Bitcoin (BTC) Loses 8% Over The Weekend But CryptoQuant CEO Points At Bullish Indicators
Bitcoin on-chain indicators are still bullish as the price declines. Corrective stage to end soon?
Key Takeaways
- Bitcoin briefly rebounded 31% but faced strong resistance.
- CryptoQuant’s Bull/Bear indicator signals a renewed bullish phase.
- Significant BTC accumulation suggests institutional interest in Bitcoin.
Bitcoin’s (BTC) recent rally hit a peak of $62,760 last Thursday, but the momentum soon faltered. By Friday, the reigning crypto king began to show signs of weakness, eventually dipping to a low of $57,710, marking an 8% decline.
While concerns loom as Bitcoin stabilizes near the $58,000 mark, on-chain evidence points to a more optimistic, contrarian outlook.
CryptoQuant CEO Bullish
Ki Young Ju, CEO of CryptoQuant, highlighted that on-chain data continues to signal a bullish market for Bitcoin despite recent fluctuations. On X , he shared that CryptoQuant’s market cycle indicator, which briefly dipped into bear territory, has now shifted back to a bullish phase.
The Bull/Bear market cycle indicator is a momentum metric that tracks Bitcoin’s market cycles by comparing the Profit & Loss (P&L) Index to its 365-day moving average. When the indicator is above 0, it signals a bull market, typically when Bitcoin sees most of its gains. If the indicator falls below 0 and its moving average, it signals a bear market, indicating a potential decline in prices.
Ju noted that the indicator briefly gave bearish signals for just four days before Bitcoin’s cycle re-entered its bullish zone on Aug. 8. Despite the weekend’s dip, Bitcoin remains in this bullish zone, reflecting a positive market sentiment.
Additionally, Ju pointed to a substantial accumulation of Bitcoin, with 404,448 BTC moving to permanent holder addresses in the past 30 days.
He predicts that within a year, major entities—ranging from traditional finance institutions to companies and governments—will announce their Bitcoin acquisitions, leaving retail investors who hesitated due to macroeconomic concerns regretting their decision.
BTC Price Analysis
Since hitting a low of $53,746 on July 5, Bitcoin has rebounded by nearly 31%, reaching a peak of $69,900 on July 29. This sharp recovery hints at a potential bullish trend. However, the rally was halted by the resistance of a descending channel in place since March 13, when Bitcoin hit its all-time high.
Soon after, Bitcoin experienced a downturn, dropping to a low of $49,600 on August 5 before recovering slightly to close the day at $54,000—still above the descending support. This rebound indicates buyers are stepping in, resulting in a 26.8% recovery to nearly $63,000.
Bitcoin’s price remains within the descending channel, a corrective structure before further gains. As it declined on Friday, we will soon receive a confirmation that we are either maintaining a higher low or making a new one.
This would indicate that the descending channel is not merely a correction but the start of a more prolonged downward trend.
With Bitcoin on an upward trajectory, the next few days will be crucial. The outlook may improve if today’s 16% recovery leads to a bullish reversal. However, if Bitcoin reencounters strong resistance, it could soon decline.
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