Bitcoin Enters New Bull Market Phase Amid Strong Demand and Profit-Taking Pressures

Bitcoin Enters New Bull Market Phase Following 24% Rally, Says CryptoQuant

October 10, 2023

In a significant turn of events for cryptocurrency enthusiasts, Bitcoin has surged into the initial phase of a potential new bull market, buoyed by a remarkable 24% rally that has shifted market sentiment into positive territory. According to a report released by CryptoQuant on Tuesday, this surge has propelled Bitcoin’s valuation metrics, with the firm’s Bull Score skyrocketing from 30 to 80 in just one week—marking its most bullish reading since early October when Bitcoin was trading around $124,000.

Strengthening Demand Fuels the Rally

The report highlights that the latest rally is underpinned by a robust increase in demand, with spot activity experiencing its fastest monthly growth since late December. For the first time since early October, both spot and futures demand are expanding simultaneously, indicating a genuine accumulation of Bitcoin alongside a resurgence of leveraged trading.

“Both apparent demand and the spot/futures decomposition turned decisively higher even before the announcements, showcasing the strongest demand configuration in nearly a year,” CryptoQuant noted, emphasizing that this trend could signal a significant regime shift in the market.

Key Resistance Level Ahead

Despite the optimistic outlook, Bitcoin faces a crucial price hurdle before confirming a full-fledged bull market. The cryptocurrency’s 365-day moving average currently stands at $83,000. Historically, bull markets have officially commenced when Bitcoin surpasses this long-term average.

“A decisive break above $83K would confirm the new bull market; until then, that level is likely to act as an initial resistance,” CryptoQuant cautioned.

Whale Activity and Potential Selling Pressure

While the market structure appears bullish, the report also warns of potential near-term selling pressure. Trader unrealized profit margins have surged to 20.5%, the highest level since June 2025, which may prompt holders to lock in gains. Additionally, whale profit-taking has accelerated, with short-term-holder whales realizing approximately $1.2 billion in profits between August 20 and 22, including a record $614 million on a single day as Bitcoin hovered around $78,000-$79,000.

CryptoQuant also noted a spike in exchange inflows, with Bitcoin inflows reaching around 53,000 BTC—the highest since June 5. This influx of Bitcoin into exchanges could indicate an intention to sell, take profits, or hedge positions.

“The regime has turned; the first leg may simply need to digest the rally first,” the report concluded.

As of the latest update, Bitcoin is trading at $78,890, reflecting a 2% decline over the past 24 hours. Investors and traders alike are keeping a close eye on the market as it navigates these pivotal moments, with the potential for significant shifts in the coming days.