Analysts Say Bitcoin May Have Entered Early Bull Market Phase

Bitcoin Shows Signs of Leaving Bear Market

Analysts at crypto research firm CryptoQuant say Bitcoin may have entered the early phase of a new bull market. A bull market is a period when prices rise and investors feel optimistic. The analysts compared Bitcoin’s recent price movements to patterns seen in past cycles before prices climbed higher.

Bitcoin’s price has risen 22% over the past seven days, reaching $78,716. It briefly touched $81,160 on August 24, 2026. This follows a slow June and July, when Bitcoin mostly traded below $65,000.

Key Observations from Analysts

• Bitcoin’s August performance is its third-best ever, with a 25% gain this month.
• Traders are moving Bitcoin to derivative exchanges, a sign they are willing to take more risks, which has marked the start of past bull markets.
• U.S. Bitcoin exchange-traded funds (ETFs)—investment funds that track Bitcoin’s price—saw their best week since October 2025, with $1.9 billion in new investments.
• Analysts warn that profit-taking and overbought conditions could lead to a short-term price drop.

What CryptoQuant’s Analysts Are Saying

Ki Young Ju, founder of CryptoQuant, wrote on X (formerly Twitter) that Bitcoin had “entered into the early bull phase.” He pointed to similarities between Bitcoin’s current behavior and its movements before previous bull markets.

Another CryptoQuant analyst, Theophiluspep, noted that while Bitcoin appears to be entering a bull market, factors like high profit-taking and exchange inflows could cause a temporary cooldown. He added that this shift seems driven by stronger demand and institutional buying through ETFs rather than excessive leverage.

Recent Market Trends

Bitcoin’s recent rise follows a U.S. Treasury Department announcement to increase long-dated bond buybacks. Since the announcement, bond yields have fallen, while Bitcoin and gold prices have risen. The U.S. dollar has also weakened, trading at a three-month low.

Regulatory developments may have also played a role. President Donald Trump met with crypto executives last week and urged lawmakers to pass the Clarity Act, a proposed law aimed at providing clearer rules for crypto assets.

What Is Confirmed

• Bitcoin’s price has risen 22% over the past seven days and 25% in August 2026.
• U.S. Bitcoin ETFs received $1.9 billion in new investments last week, their best week since October 2025.
• CryptoQuant analysts say Bitcoin is showing patterns similar to past bull market starts.
• The U.S. Treasury announced plans to increase bond buybacks, which coincided with Bitcoin’s price rise.

What Remains Uncertain

• Whether Bitcoin’s price will continue rising or experience a short-term pullback due to profit-taking.
• How long the current market trend will last or if it will reverse.
• The exact impact of regulatory developments, such as the Clarity Act, on Bitcoin’s price.

Why This Matters for Crypto Investors

If Bitcoin has entered a bull market, it could signal a longer period of rising prices. The recent surge in ETF investments suggests growing interest from institutional investors, who manage large sums of money for clients like pension funds and corporations. However, analysts caution that short-term price drops are still possible, so investors should be aware of potential volatility.

Sources

• Bitcoin Magazine