Bitcoin (BTC) may be entering a new bull-market phase, as several valuation, demand, and liquidity indicators have turned higher, according to CryptoQuant. The analytics firm outlined the shift in a research note published August 25, but said Bitcoin still needs further confirmation.

The assessment comes as BTC has also shown renewed price strength. The cryptocurrency climbed about 24% from August 17 and reached $80,000, its highest level since mid-May.

Bitcoin Rally Gains Broader Support

The rally came amid plans by the US Treasury to raise long-term bond buybacks to at least $4 billion per operation from September 9. It also followed comments from President Donald Trump about possible federal Bitcoin purchases.

These developments coincided with a sharp improvement in CryptoQuant’s market indicators. The firm’s Bull Score rose from 30 to 80 during the week, its strongest reading since October 6, 2025, when Bitcoin traded close to $124,000. Eight of its ten underlying indicators are now in bullish territory.

Demand conditions further supported the shift, with apparent spot demand expanding at its fastest monthly pace since late December. Spot and futures demand rose together for the first time since early October 2025, pointing to broader market participation.

Confirmation Depends on Key Level

CryptoQuant described these developments as the early stage of a new bull cycle. However, it said Bitcoin needs a daily close above its 365-day moving average for confirmation. That average currently stands near $83,000, leaving Bitcoin below an important technical threshold despite the recent move.

Despite the bullish signals, the report also identified factors that could create short-term pressure on Bitcoin’s price. Trader unrealized profit margins reached 20.5%, their highest level since June 2025. At the same time, large holders realized a record $614 million in profits on August 20.

Signs of potential selling were also visible in exchange flows. CryptoQuant observed higher Bitcoin, Ether, and XRP deposits on exchanges, which can signal that some holders are preparing to sell. The data does not guarantee a market decline, but it suggests profit-taking could become more significant if prices struggle above key resistance levels.

Source: CryptoPotato