The Bitcoin bull-bear market cycle indicator, which monitors phases of investor sentiment, has recently turned bullish after showing bearish signals for three days while Bitcoin’s price fell to levels not seen since February. CryptoQuant’s founder, CEKi Young Ju, highlighted in an August 9 X post that many on-chain indicators are now signaling a bull market. Pseudonymous crypto trader PlanB also affirmed that Bitcoin remains in a bull market.
The indicator shifted to “Bear” territory when Bitcoin’s price dropped below $50,000, as noted by CryptoQuant. Ju mentioned that this bearish phase lasted only three days, following Bitcoin’s decline to $49,751 on August 5, an event dubbed “Crypto Black Monday,” marking its first fall below $50,000 since February. Bitcoin remained below the crucial $60,000 mark until August 8, according to CoinMarketCap data. As of the latest update, Bitcoin is trading at $60,732.
The Bitcoin bull-bear market cycle indicator hadn’t shown a bearish signal since January 2023, shortly after the FTX collapse. The Crypto Fear and Greed Index also reached an “Extreme Fear” score of 17 on August 6, the lowest since the FTX crash, but has since recovered to a “Neutral” reading of 48.
Some traders suggest the recent price dip might be a bear trap, a tactic where seasoned traders sell Bitcoin to temporarily lower its price and trap short-sellers. Opinions on Bitcoin’s future are divided. Markus Thielen from 10x Research mentioned on August 7 that a price drop into the low $40,000s might signal an optimal entry point for the next bull market. Ark Invest, in an August 6 report, noted Bitcoin’s key support levels at $52,000 and $46,000. Veteran trader Peter Brandt observed that Bitcoin’s decline since the last halving resembles the 2015-2017 cycle, hinting at a potential upcoming bull run.