BTC Indicators Shift to Bullish As Large Holders Accumulate

• CryptoQuant indicators now signal a Bitcoin bull market, reversing recent trends.
• Large holders bought $5B in Bitcoin in July, the highest monthly since 2014.
• Most Bitcoin holders are in profit, with strong support below $58,932.

Most Bitcoin (BTC) on-chain cyclical indicators have previously hovered near the Bull-Bear Market Cycle Indicator borderline. However, they have now shifted to signaling a bull market, according to recent insights shared by Ki Young Ju, Founder and CEO of CryptoQuant. This development comes after Bitcoin was discounted for only three days, marking a notable change in market sentiment.

The CryptoQuant Bitcoin Bull-Bear Market Cycle Indicator offers a comprehensive view of Bitcoin’s current market phase. The chart reveals distinct market phases, each signaling different trends. During February and March, Bitcoin briefly touched the “Overheated Bull” red zone, indicating a potential overvaluation, with prices exceeding $67,000. 

However, most of the observed period from March through early May falls within the “Bull” orange zone, where Bitcoin’s price ranged between $55,000 and $65,000. This phase suggests a steady upward trend. Meanwhile, a dip into the “Bear” blue zone around mid-July saw Bitcoin’s price briefly fall below $55,000, reflecting a period of market correction.

The light green area represents the early stages of a bull market, where Bitcoin begins to recover from bearish conditions. The chart indicates a brief touch into this phase around early August, signaling that Bitcoin may be transitioning from bearish to bullish sentiment.

Adding to the bullish narrative, the Global In/Out of the Money (IOM) analysis for Bitcoin, provided by IntoTheBlock, shows a significant portion of Bitcoin holders currently in profit. The analysis highlights that most Bitcoin holdings below $58,932.21 are profitable at the price of $60,423.82. 

Notably, the most substantial support levels are found between $37,414.97 and $58,932.21, reinforcing the potential for sustained bullish momentum. However, resistance is anticipated in the $62,393.57 to $72,500.92 range, where holders might seek to minimize losses if prices rise.

Further, in July, large Bitcoin holders accumulated 84,000 BTC, equivalent to $5 billion, marking the highest monthly accumulation since 2014. Expert analyst Ash Crypto described this as “giga bullish,” further supporting the positive outlook for Bitcoin. 

At the time of this writing, Bitcoin is priced at $60,505.26, reflecting a slight decline of -0.96% over the last 24 hours and -1.99% over the past week. Despite the recent dip, the accumulation trend signals strong confidence among large holders, potentially paving the way for a bullish run.