Bitcoin bull-bear cycle indicator flips bullish as price holds $60K

The bull-bear market cycle indicator for Bitcoin, which tracks phases of investor mood, has switched to indicate bullish circumstances after flashing red for three days as the price of the cryptocurrency fell to depths not seen since February.

The creator of CryptoQuant and CEKi Young Ju stated in an Aug. 9 X post that "most Bitcoin on-chain cyclical indicators that were hovering near the borderline have now shifted back to signaling a bull market."

PlanB, an anonymous cryptocurrency trader, continued, saying, "Bitcoin is still in a bull market."

Ju asserted, "BTC was discounted for only three days." The investigation was conducted following Bitcoin's August 5 plunge to $49,751, dubbed "Crypto Black Monday." the decline below $50,000 was the first since February.

According to research, Bitcoin then fluctuated below the crucial key level of $60,000 until August 8.

As at the time of publishing, the price of Bitcoin is $60,732.

The bull-bear market cycle indicator for Bitcoin had not displayed a bear signal since January 2023, just following the crash of FTX.

Bearish emotion was not limited to it; on August 6, the Crypto Fear and Greed Index also reached its lowest point since the FTX crisis, with a "Extreme Fear" score of 17.

The score has since recovered to a "Neutral" reading of 48.

Some Bitcoin traders think the swift turnaround indicates that the recent price decline may have been a bear trap, in which knowledgeable traders sell Bitcoin at a controlled loss in order to lure short sellers in and temporarily reduce the asset's price.

While some analysts believe that the recent decline in Bitcoin is reminiscent of past patterns prior to bull markets, others are less optimistic.

Markus Thielen, head of research at 10x Research, said on August 7 that "we aim for Bitcoin prices to fall into the low 40,000s to ideally time the next bull market entry."

The two key price supports for Bitcoin, according to Cathie Wood's investing business Ark Invest, are $52,000 and $46,000, according to a research published on August 6.

A bull run might come next, according to seasoned trader Peter Brandt, who noted that Bitcoin's "decline since halving is now similar to that of the 2015-2017 halving bull market cycle."