Bitcoin may have entered a new bull market, analysts said. They added that price volatility could increase in the early stage as profit-taking overlaps.

On Aug. 27, CoinPost reported that crypto analytics firm CryptoQuant said in its weekly report that bitcoin’s market phase may be shifting from bearish to bullish.

Bitcoin has jumped 24% since Aug. 17 and briefly hit $80,000. That was the highest level since May 15. CryptoQuant also pointed to fiscal and political issues behind the surge. The U.S. Treasury decided to double the minimum size of each buyback operation of long-term Treasuries to at least $4 billion from Sept. 9, and U.S. President Donald Trump mentioned the possibility that the government could consider buying bitcoin. CryptoQuant said the market took those developments as bullish factors.

Demand indicators also supported the possibility of a shift to a bullish phase. The pace of growth in spot demand was the fastest since last December. It was the first time that spot and futures demand rose at the same time since early October 2025, when bitcoin set a new record high.

CryptoQuant said apparent demand for bitcoin in the spot market has returned to an expansion phase. After that indicator turned in the past, gains continued with a 78% probability and the median rise was 23%, it said. It suggested the moves may differ from a simple short-term rebound, as market participants are increasing actual buying intensity.

Still, selling pressure is also rising as the pace of gains accelerates. CryptoQuant said on-chain indicators show a higher likelihood of selling by investors who have newly secured large unrealised profits. That is why it said that even if the market shifts into a bull phase, the early stage could be turbulent.

Traders’ average unrealised profit ratio rose to 20.5%, the highest since June last year. Earlier this year, when bitcoin reached $82,000 in early May and the ratio neared 19%, profit-taking emerged and bitcoin fell 30% the following month. Whale investors with a short-term holding tendency have also already moved. Between Aug. 20 and 22, when bitcoin traded around $78,000 to $79,000, they realised profits of $1.2 billion.

Exchange fund flows also supported the possibility of rising selling pressure. Deposits of bitcoin, ethereum and major altcoins to exchanges have surged recently. Deposit amounts of bitcoin and ethereum rose to the highest level since June, and the cumulative number of altcoin deposit transactions over the past seven days was about 39,000, the highest since early July. Much of that volume moved to Binance.

CryptoQuant also presented a key price level that market participants should watch. It said whether bitcoin can close above $83,000, its 365-day moving average, is the final point that would confirm entry into a new bull market. It said a clear break above $83,000 would confirm a bull phase, but until then the level could act as initial resistance and trigger a pullback.

The market appears to have entered a phase where recovering demand confronts profit-taking pressure. Whether bitcoin cements a trend shift by moving above $83,000, or remains in a volatile market blocked by exchange inflows and short-term selling pressure, has emerged as the next point to watch.