TL;DR
- CryptoQuant sees early signs of a fresh Bitcoin bull cycle as demand, liquidity and valuation indicators improve. Its Bull Score jumped to 80, while eight of ten tracked indicators turned bullish.
- US Bitcoin ETFs also recorded roughly $1.92 billion in net inflows during the week ending August 21.
- Still, BTC needs a daily close above its 365-day moving average near $83,000.
Bitcoin may be entering the early stage of a new bull cycle, according to CryptoQuant, as stronger demand and improving liquidity give the market a healthier foundation. The shift comes after BTC gained about 24% from August 17 and climbed to $80,000, its highest level since mid-May.
CryptoQuant’s Bull Score rose from 30 to 80 in one week, reaching its strongest reading since October 6, 2025. Eight of the firm’s ten underlying indicators are now classified as bullish, suggesting the improvement extends beyond price momentum alone. Apparent spot demand also recorded its fastest monthly expansion since late December, while spot and futures demand strengthened together for the first time since early October 2025.
Bitcoin Demand Adds Institutional Support
Recent flows from regulated investment products reinforce that improvement. CryptoQuant reported that US spot Bitcoin ETFs attracted about $1.92 billion between August 17 and August 21, with all five sessions posting positive net flows. The seven-day average reached 3,820 BTC on August 21, the strongest reading since early January. Binance also recorded more than $470 million in net USDC inflows on August 24, adding fresh dollar-linked liquidity to an already stronger market.
These figures matter because Bitcoin’s rally is no longer relying solely on speculative futures activity. Stronger spot demand, ETF allocations and exchange-based stablecoin liquidity can create a broader base for price appreciation when buyers continue to absorb available supply.
Confirmation Hinges On $83,000
CryptoQuant still sees an important technical test ahead. The firm says Bitcoin needs a daily close above its 365-day moving average, currently near $83,000, before the new bull-cycle reading can be confirmed. That leaves BTC close to, but still below, a level that could determine whether the recent advance develops into a sustained trend.
Selling pressure remains the main risk. Trader unrealized profit margins reached 20.5%, their highest level since June 2025, while large holders realized a record $614 million in profits on August 20. Higher deposits of Bitcoin, Ether and XRP onto exchanges also point to potential profit-taking. CryptoQuant notes that exchange inflows can increase available sell-side supply, although they do not guarantee a decline.
