"Cryptoquant’s Bitcoin Bull-Bear Market Cycle Indicator entered bullish territory on Tuesday for the first time since March 2023, per data shared by the analytics firm. The shift marks what analysts describe as a potential transition from a bear-market environment to one where conditions historically favor a sustained uptrend. The indicator is built on Cryptoquant’s Profit and Loss (P&L) Index, which aggregates three key onchain metrics, namely the Market Value to Realized Value (MVRV) ratio, the Net Unrealized Profit and Loss (NUPL), and a comparison of Long-Term Holder and Short-Term Holder Spent Output Profit Ratios (LTH/STH SOPR)."
"When the P&L Index climbs above its 365-day moving average, the indicator flips green. When it falls below, it turns red. The last confirmed green signal came in March 2023, and it held continuously until August 2024, a period that covered one of bitcoin’s most significant bull cycles, during which the price climbed from roughly $20,000 to an all-time high above $73,000. By that measure, Tuesday’s flip carries meaningful weight for traders watching for cycle turning points."
"Despite the positive signal, Cryptoquant was careful to flag a caveat. In March 2022, the same indicator flashed green before price quickly rejected the move and continued lower, eventually bottoming out with the FTX collapse in November of that year. That false signal is why analysts say Tuesday’s read should be treated as a data point to watch, not a guaranteed g"
"April spot ETF inflows hit $2.44B, and whale accumulation has grown, adding weight to the bullish read. Bullish Signal Flashes Near $80,000 Cryptoquant’s Bitcoin Bull- Bear Market Cycle Indicator turned green for the first time since March 2023 on May 12. The March 2023 signal preceded a bull run that took bitcoin above $73,000, but a 2022 false signal warrants caution."
Bitcoin’s Bull-Bear Market Cycle Indicator turned green for the first time since March 2023, indicating a possible transition from bear-market conditions to historically favorable uptrend conditions. The indicator is based on Cryptoquant’s Profit and Loss Index, which combines MVRV ratio, NUPL, and LTH/STH SOPR. The signal turns green when the P&L Index rises above its 365-day moving average and turns red when it falls below. The prior confirmed green signal in March 2023 preceded a major bull run that pushed bitcoin above $73,000. A prior green signal in March 2022 later failed, with bitcoin rejecting the move and declining into the FTX collapse. April spot ETF inflows reached $2.44B, and whale accumulation increased, supporting the bullish interpretation.
Read at news.bitcoin.com
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