Bitcoin on-chain indicators have entered a bullish zone for the first time in 8 months, bringing renewed attention to the possibility of a bearish-market reversal, blockchain media outlet U.Today reported on Tuesday.

CryptoQuant’s Bitcoin cycle momentum indicator has recently returned to positive territory. The signal shakes claims in part of the market that bitcoin’s traditional four-year cycle has been neutralised by institutional inflows. The indicator has previously pointed relatively accurately to the end of long downturns. A condition remains that the indicator must settle at higher levels over the coming weeks for a reversal to be fully confirmed.

Bitcoin’s recent surge is cited as a reason behind the move away from a market bottom. Bitcoin rose quickly from $62,000 to $81,000, breaking out of months of stagnation. A clear shift in holdings among market participants also emerged in the process.

CryptoQuant said the current recovery phase is close to a “typical cycle transition scenario.” It said supply from retail investors who locked in losses in fear has largely moved to long-term holders. August data also confirmed that trend. Large wallets holding 100 BTC or more accumulated about 60,000 BTC, while smaller investors holding less than 100 BTC sold about 47,000 BTC in total.

The stance of large holders has also changed. They have started using bitcoin as loan collateral rather than selling it. On specialist platforms, the size of collateralised loans by large investors rose 18 percent. They effectively maintained their bitcoin holdings while temporarily shifting some risk exposure to other digital assets. This is read as a signal that large holders are placing weight on the possibility of an imminent rally.

Inflows have also continued. U.S. spot bitcoin ETFs recorded their strongest weekly investor inflows in the past 10 months. More than $470 million of dollar-pegged stablecoin USDC flowed into major exchanges. That means technical reversal signals are being supported by actual fund flows.

Even so, it is too early in the short term to expect a one-way rise. Bitcoin has entered a “neutral zone” around $78,000, where the current price is judged to be fairly valued. The market is in a pause after the initial rise. Heavy selling by retail investors who moved quickly to take profits after the early jump is acting as overhead pressure.

A key point to watch is whether $69,000 holds as support. That level is presented as the average purchase price for short-term investors. If the market holds the level, 전망이 나온다 that it is only a matter of time before bitcoin returns to a broader bullish trend. If it fails to hold the support line, the credibility of the reversal signal could face another test.