Bitcoin (BTC) Market Cycle Indicator Flips Bullish After 'Crypto Black Monday' Dip

The Bitcoin bull-bear market cycle indicator has shifted to a bullish signal once again, following a brief bearish period triggered by Bitcoin’s dip below $50,000.

CryptoQuant’s key Bitcoin (BTC) on-chain metric has shifted back to indicating a bull market after briefly signaling a bear period following Bitcoin’s dip below $50,000.

The indicator, which measures the distance between the realized price and the market price of BTC, had turned red for three days as BTC’s price dropped to its lowest since February. However, the indicator flipped back to green on August 6.

Most Bitcoin on-chain cyclical indicators are now signaling a bull market again, according to CryptoQuant founder and CEO Ki Young Ju.

Ki Young Ju recently shared on X that as long as the value of Bitcoin remains above $45,000, it could reach a new all-time high within the next year.

He noted that although some market trends are currently indicating a downward trend, there’s still a chance for a comeback if Bitcoin stays at this price for the next few days.

However, Ju warned that if Bitcoin stays at or below this level for a long time, the chances of moving into a bear market increase. He added that recovering from this situation could be especially difficult if the decline continues for over a month.

As long as the #Bitcoin price stays above $45K, it could break its all-time high again within a year, imo.

Some indicators are showing bearish signals. However, they could still recover with a rebound, so we need to watch if it stays at this level for a week or two.

If it… https://t.co/FnqafcQcjp pic.twitter.com/fJiM2btQeF

— Ki Young Ju (@ki_young_sju) August 6, 2024

Bitcoin recovers from ‘Crypto Black Monday’

CryptoQuant data shows that Bitcoin was considered discounted for only three days, with a notable drop to $49,751 on August 5, dubbed ‘Crypto Black Monday’ — the first time BTC had fallen below $50,000 since February.

According to CoinMarketCap, BTC traded below the crucial $60,000 mark until August 8. At the time of writing, Bitcoin is valued at $60,726.

The Bitcoin bull-bear market cycle indicator had not signaled a bear period since January 2023, CryptoQuant data indicates.

The crypto fear and greed index reached an ‘Extreme Fear’ score of 17 on August 6, the lowest since the FTX crash. However, it has since recovered to a ‘Neutral’ score of 48.

Some traders are viewing the rapid turnaround as a sign of a potential bear trap, where experienced traders may be selling Bitcoin strategically to temporarily drive down prices and trap short-sellers.

Opinions vary on the market’s next direction, with 10x Research head of research Markus Thielen suggesting that an ideal entry point for the next bull market would be Bitcoin prices falling into the low $40,000s.

Meanwhile, Ark Invest, in its August 6 report, identified critical price supports at $52,000 and $46,000. Veteran trader Peter Brandt observed that Bitcoin’s recent price decline is reminiscent of the 2015-2017 halving bull market cycle, which could be signaling an upcoming bull run.

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