Bitcoin in new bull market, but $83K remains key
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Written by
Simonas Brazionis - Updated 2026-08-27 06:34:30
Bitcoin has entered the initial phase of a new bull market, according to analytics firm CryptoQuant. This assessment follows a 24% price rally that has pushed key on-chain and demand indicators into bullish territory. The firm's Bull Score increased from 30 to 80 in the past week, reaching its highest point since October 2025.
Bitcoin‘s price climbed above $80,000 during this rally. CryptoQuant indicated that a weekly close above its 365-day moving average, currently around $83,000, is necessary to confirm a definitive shift into a new bull market.
Key Indicators and Price Targets
This movement has been supported by an acceleration in spot demand, with both spot and futures demand growing concurrently for the first time since early October 2025. Joel Kruger, a market strategist at LMAX Group, identified the May 2026 high of $82,820 as another significant level for Bitcoin.
Kruger suggested that a clear breach above this level would reinforce the idea of a meaningful cycle low and direct attention toward a subsequent move through $100,000, eventually targeting the 2025 record high. At the time of this report, Bitcoin was trading near $79,000.
Short-Term Overheating Concerns
Despite these bullish signals, CryptoQuant cautioned that the rally might be overheated in the short term. The firm pointed to rising trader profits, significant profit-taking by large holders, and an increase in Bitcoin deposits to exchanges as contributing factors. Unrealized profit margins for traders have reached 20.5%, the highest since June 2025.
CryptoQuant noted that Bitcoin experienced a roughly 30% decline after this metric reached 19% in early May, when BTC was trading near $82,000. Short-term holder whales realized approximately $1.2 billion in profits between August 20 and August 22, with a record $614 million realized on August 20, as Bitcoin traded between $78,000 and $79,000.
Bitcoin exchange inflows also rose to about 53,000 BTC, the highest level since June, suggesting an increased movement of coins onto trading platforms for potential sale.
