Bitcoin Price May Continue Surging as Crypto Markets Signal Early Bull Phase : Analysis

On-chain analytics firm CryptoQuant has recently indicated that Bitcoin and the broader cryptocurrency sector appear to have transitioned into the initial stages of a new bull market. This assessment follows a sharp price recovery that has shifted several key metrics into positive territory, raising the possibility of further upside for the leading digital asset.

Bitcoin climbed approximately 24 percent starting from August 17, 2026, reaching a peak near $80,000—its strongest level since mid-May.

Analysts at the firm attribute much of this momentum to favorable macroeconomic developments.

These include the U.S. Treasury’s announcement of plans to increase long-term government bond buybacks to at least $4 billion per operation beginning in September, alongside comments from President Trump suggesting potential government interest in acquiring Bitcoin.

Market participants interpreted these developments as supportive for risk assets.

CryptoQuant’s proprietary Bull Score, which aggregates multiple on-chain, valuation, and market indicators, rose sharply from 30 to 80 within a single week.

This marks its most constructive reading since early October 2025, when Bitcoin was trading significantly higher.

Eight of the ten components underlying the score are now signaling bullish conditions.

Valuation measures, demand trends, and liquidity indicators have collectively moved into a more favorable regime.

Demand-side data reinforces this view.

Apparent spot demand for Bitcoin is expanding at its strongest monthly rate since late December of the prior year.

Notably, both spot and futures market demand are increasing in tandem for the first time since early October 2025, pointing to broader participation across different segments of the market.

Despite these encouraging signals, CryptoQuant emphasizes that full confirmation of a sustained bull market remains pending.

The firm views a close above Bitcoin’s 365-day moving average—currently situated around $83,000—as the critical threshold for officially validating the regime change.

Until that level is cleared on a sustained basis, the current environment is best described as the early phase of a potential uptrend rather than a fully established bull market.

At the same time, analysts have flagged signs of short-term overheating that could lead to temporary pullbacks.

Trader unrealized profit margins have risen to 20.5 percent, the highest since June 2025.

In a previous instance when this metric approached similar levels near $82,000 earlier in the year, Bitcoin subsequently experienced a notable decline.

Short-term holder whales realized substantial profits, including a record $614 million on August 20 alone, with total realizations around $1.2 billion over a short window.

Additionally, exchange inflows of Bitcoin, Ethereum, and XRP have increased, suggesting that some holders may be preparing to sell and introducing near-term supply pressure.

The alignment of valuation, demand, and liquidity metrics supports the case for continued strength in Bitcoin’s price trajectory, provided the key technical level is overcome and profit-taking does not escalate into broader selling.

Market participants will closely monitor whether the recent momentum can push prices beyond the 365-day moving average to solidify the bullish shift. As with all cryptocurrency markets, volatility remains a constant factor, and developments in macro policy and on-chain activity will continue to influence outcomes.