Zhitong Finance learned that analysts from market intelligence platform CryptoQuant have outlined on-chain indicators that can show whether the Bitcoin price has bottomed out and the cryptocurrency has begun to rebound again.
The latest weekly CryptoQuant report mentioned that signals such as increased bullish momentum, rising demand for Bitcoin, and accelerated growth in stablecoin liquidity are worth paying attention to.
Cryptocurrencies were trading higher in early Asian trading on Monday. As of press time, the price of Bitcoin was up 4.34% at $634.09 million per coin.
CryptoQuant’s Bitcoin Bull/Bear Cycle Indicator currently suggests that the crypto market is in its least bullish state since the U.S. banking crisis in March 2023.
Bitcoin fell to a one-month low of $58,500 earlier this week and the market needs bullish momentum to recover the price.
This means that CryptoQuant’s Bull/Bear Cycle Indicator needs to rise above its 30-day simple moving average.
Furthermore, Bitcoin demand growth would have to accelerate to levels seen in the first quarter of this year for prices to recover.
