TLDR:
- Bitcoin broke a six-week range, surging to $79,400 amid strong spot demand. (78 chars)
- Spot Bitcoin ETFs saw $1.92 billion in inflows over five trading days. (73 chars)
- Short-term holder cost basis near $68,500 was reclaimed as support. (70 chars)
- A $3 billion short squeeze fueled the rally, raising questions on durability.
Bitcoin’s bear market may be nearing its end, according to CryptoQuant CEO Joo Ki-young. Joo said on August 21 that such rallies during bear markets often mark a bottom.
Bitcoin broke out of a six-week range between $62,000 and $67,000, surging to $79,400. The cryptocurrency now trades at $77,161.80, up 0.30% in 24 hours.
It has gained 22.00% over the past week, with $27 billion in daily volume. Data increasingly supports his view, though confirmation of the bottom remains premature.
Spot Demand and ETF Inflows Strengthen Bullish Case
Bitcoin’s breakout came alongside improved spot and perpetual futures demand across major exchanges. This shift suggests the rally extended beyond simple derivatives-driven speculation.
Spot buying pressure has played an increasingly important role in the recent price move. Traders viewed the sustained spot activity as a sign of genuine market strength.
U.S. spot Bitcoin ETFs recorded net inflows of about $1.92 billion over five trading days. These inflows indicate that institutional demand contributed meaningfully to the price surge.
The steady ETF buying reduced concerns that the rally relied only on leveraged positions. Consistent institutional participation remains a key factor supporting the current uptrend.
On-chain data also improved sharply in recent weeks, according to CryptoQuant figures. Short-term holder acquisition cost stood near $68,500 as of August 19.
The True Market Mean level was recorded at approximately $75,800 on the same date. Bitcoin has since recovered above both of these key acquisition cost levels.
Recovering above these thresholds often signals renewed confidence among short-term holders. Analysts consider such recoveries an early sign of strengthening market structure.
The combination of spot demand, ETF inflows, and on-chain recovery supports Joo’s outlook. Still, each metric alone cannot confirm a complete shift in trend.
Short Squeeze and Resistance Levels Remain Key Tests
The breakout above $67,000 triggered a large-scale short squeeze across derivatives markets. Roughly $3 billion in short positions were liquidated during the rapid price move.
This squeeze amplified the rally and pushed prices higher than spot demand alone. Such liquidation events can create sharp, temporary price swings during trending markets.
Earlier this year, Bitcoin rose from about $60,000 to $82,000 in a similar move. That rally ultimately proved to be a temporary rebound within a broader bear market.
The comparison shows why analysts remain cautious despite the recent price strength. History suggests strong rallies do not always confirm a lasting trend reversal.
CryptoQuant analyst noted that Bitcoin must hold support between $75,000 and $76,000 going forward. A confirmed break above $80,000 would strengthen the case for a trend change.
Clearing the previous resistance zone between $82,000 and $83,000 remains the next major test. Sustained ETF and spot demand would need to accompany any further upside.
Joo’s shift toward a bullish stance reflects changes in underlying market data. He previously held a bearish outlook before recent trends changed his assessment.
The current view is that a cycle bottom near $60,000 has grown more likely. Confirmation still requires sustained demand and price stability above key cost levels.
