Bitcoin is showing early signs of a new bull cycle as demand picks up and liquidity conditions improve, according to analytics firm CryptoQuant. The assessment points to a strengthening market foundation driven by robust buying interest and better capital flows, not just a temporary price pop.
The cryptocurrency has climbed 24% since August 17, breaking above $80,000 to reach its highest level since mid-May. CryptoQuant's "bullish index" jumped from 30 to 80 within a week, marking the strongest reading since October 6, 2025. Eight out of ten tracked indicators are now flashing bullish signals, suggesting the uptrend is broad-based rather than limited to price action alone.
Spot market demand is growing at the fastest pace since late December, and for the first time since early October 2025, both spot and futures demand are rising together. Data compiled by Woofun AI shows US spot Bitcoin ETFs recorded net inflows of $1.92 billion between August 17 and 21, with all five trading days in positive territory. The seven-day average holdings climbed to 3,820 BTC by August 21, the highest level since early January this year.
Adding to the bullish backdrop, Binance saw $470 million in net USDC inflows on August 24, boosting dollar-pegged liquidity and ensuring the rally is supported by more than just speculative trading. Still, technical resistance and profit-taking pressures remain. Bitcoin needs a daily close above its 365-day moving average—around $83,000—to confirm the trend. Unrealized profit margins have risen to 20.5%, the highest since June 2025, and large holders cashed in $614 million in profits on August 20. With more Bitcoin, Ethereum, and XRP being deposited into exchanges, potential selling pressure is building, though this doesn't necessarily guarantee a price decline.
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