According to some metrics, Bitcoin (BTC) has ended its bear market as a composite BTC price indicator flips bullish for the first time since October 2025.
Key points:
- Bitcoin has exited its 2026 bear market, Ki Young Ju says as a profitability metric prints a positive reading of 0.042.
- The breakout from negative to positive numbers repeats a bull-market recovery signal also visible in early 2023.
- Concerns remain over insufficient market liquidity to support a macro BTC price trend change.
Bitcoin profit metric offers first bull signal in ten months
The latest data from onchain analytics platform CryptoQuant has led its CEO, Ki Young Ju, to call time on Bitcoin’s 2026 bear market.
In an X post on Wednesday, Ki flagged the first positive reading on CryptoQuant’s Bull/Bear Market Cycle Indicator since early October.
“The Bitcoin bear cycle is over,” he wrote in accompanying commentary.
The indicator is derived from the P&L Index — initially devised by CryptoQuant’s head of research — and measures the P&L Index’s distance from its 365-day moving average. The P&L Index itself is composed of several onchain profitability metrics: the market value to realized value (MVRV) ratio, net unrealized profit/loss (NUPL) and the spent output profit ratio (SOPR). Together they provide an overall picture of Bitcoin investors’ realized and unrealized profits and losses. Values above zero for the Bull/Bear indicator point to bullish phases in the BTC price cycle as profitability improves.
Current cycle lows came on Feb. 5 as BTC/USD fell to $60,000, with a reading of -1.244 corresponding to “extreme bear” conditions. As of Aug. 26, the most recent date for which full data is available, Bull/Bear displayed a positive reading of 0.042, placing it in its “bull” bracket.
Bitcoin Bull/Bear Market Cycle Indicator. Source: CryptoQuant
The combination of P&L metrics and their 365-day moving averages has proven accurate at confirming macro BTC price trend changes. Ki notes that Bull/Bear likewise called the end of the previous bear market as upside returned in early 2023.
Bitcoin Bull/Bear Market Cycle Indicator historical data. Source: CryptoQuant
Misgivings over BTC price strength continue to mount
Bitcoin has seen the slow return of bull signals from various indicators in recent weeks, including the relative strength index (RSI), a recovery for which was also present at the end of 2022.
Related: Supply absorption ‘key question’ as Bitcoin fails to reclaim $80K: Analysis
Consensus among market participants over Bitcoin’s recent upside marking the end of its macro downtrend is by no means unanimous. Previously, Cointelegraph reported on concerns that a lack of demand could see BTC/USD revert to downside, with multiple liquidity hurdles lined up immediately above spot price.
In ongoing market commentary, trader and analyst Rekt Capital argued that the August monthly close would be “pivotal” for the fate of the recovery, referring to a potential breakout from a downward-sloping resistance trend line in place since October last year.