Bitcoin Back in Bull Territory: Key Market Indicator Turns Positive as Price Stays Above $60K
The Bitcoin Bull-Bear Market Cycle indicator, which gauges investor sentiment, has switched to a bullish stance after briefly signaling bearish conditions. This change comes after a recent dip to levels not seen since February, with BTC now holding steady above $60,000.
Ki Young Ju, CEO and founder of CryptoQuant, noted that several Bitcoin on-chain indicators that were close to neutral have turned bullish again. In an August 9 post on X, Ju commented, "Most Bitcoin on-chain cyclical indicators... have now reverted to indicating a bull market."
Pseudonymous trader PlanB agreed, stating that "Bitcoin is still in a bull market." Ju highlighted that Bitcoin was only undervalued for three days following its drop to $49,751 on August 5, an event now known as "Crypto Black Monday." This drop was Bitcoin's first dip below $50,000 since February. However, by August 8, Bitcoin had bounced back to trade above the critical $60,000 level, with its current price at $60,732, according to CoinMarketCap.
The bull-bear cycle indicator hadn't flashed a bearish signal since January 2023, shortly after the FTX collapse. It wasn't the only indicator showing bearish sentiment; the Crypto Fear & Greed Index also hit an "Extreme Fear" score of 17 on August 6, the lowest since the FTX fallout. The index has since recovered to a "Neutral" score of 48.
Some traders suspect the recent price drop could have been a bear trap—a tactic where seasoned traders drive down Bitcoin's price to trap short-sellers.
Analysts are divided on Bitcoin's next move. While some suggest the recent downturn mirrors previous patterns before major bull runs, others remain cautious. On August 7, Markus Thielen, head of research at 10x Research, suggested that Bitcoin might need to drop into the low $40,000s to set up the next bull market entry.
Ark Invest noted in an August 6 report that Bitcoin's key support levels are at $52,000 and $46,000. Time will reveal the next phase.
$BTC
