Daily News 19

Tag: Bear market

  • What’s Driving Bitcoin’s Rise? Glassnode and CryptoQuant CEOs Explain

    What’s Driving Bitcoin’s Rise? Glassnode and CryptoQuant CEOs Explain

    Key Highlights

    • Bitcoin surged past $85,000 as short-position liquidations between $82,000 and $86,000 accelerated upward momentum, according to Glassnode on-chain data.
    • CryptoQuant CEO Ki Young Ju confirmed Bitcoin has reclaimed the critical 365-day moving average at approximately $83,000, a level widely watched to signal the end of the bear market.
    • Analysts suggest sustained trading above the 365-day MA could trigger increased buying pressure from trend-following and institutional investors driven by FOMO.

    Short-Position Liquidations Fuel Bitcoin’s Break Above $85,000

    Bitcoin opened the week with a decisive move above the $85,000 threshold, marking its highest level in months. On-chain analytics firm Glassnode attributes the acceleration to a cascade of short-position liquidations clustered between $82,000 and $86,000. According to Glassnode data, a significant volume of short liquidity had accumulated in this range over recent months. When Bitcoin failed to produce the sharp pullbacks many traders anticipated, those holding short positions were forced to buy back $BTC to cover, creating a feedback loop that propelled prices higher.

    Glassnode analysts described the dynamic in their latest assessment: “As expected, Bitcoin quickly broke through the short liquidation wall.” They elaborated that the rejection at this level proved insufficient to halt the advance: “Short positions accumulated between $82,000 and $86,000 over the months, but the rejection at that level was insufficient. Now these short positions have become fuel, because these traders need to buy back $BTC.” This short-covering rally has effectively turned prior bearish positioning into buying pressure.

    365-Day Moving Average Reclaimed: A Critical Bull-Market Signal

    Adding weight to the bullish narrative, CryptoQuant CEO Ki Young Ju posted on X that Bitcoin has reclaimed its 365-day moving average, currently situated near $83,000, with price action holding above $84,000. Ju emphasized that this long-term trend indicator is a primary reference point for market participants assessing whether the bear market has concluded. CryptoQuant has historically treated a sustained breakout above the 365-day MA as a confirmation signal for a new bull market cycle.

    Ju’s commentary underscored the psychological and structural importance of the level: “Bitcoin reclaimed the 365MA at the $83,000 level and is currently sitting above $84,000.” He further noted the potential for momentum-driven inflows: “This is the line everyone is watching for the end of the bear market. If it holds, momentum will start to drive traders and institutions crazy with FOMO. This is where things get fun.”

    Why This Matters

    The confluence of short-covering dynamics and a key long-term technical reclamation presents a noteworthy inflection point for Bitcoin. The $82,000–$86,000 zone had acted as a liquidity magnet for bearish bets; its clearance removes a structural overhang and may reduce near-term selling pressure from forced liquidations. Simultaneously, the 365-day moving average reclaim is widely regarded by quantitative analysts and institutional desks as a regime-change filter. A daily close above this level, if sustained, could unlock algorithmic trend-following strategies and encourage capital allocation from funds that mandate bull-market confirmation before deploying size. Market participants will now monitor whether Bitcoin can establish support above the 365-day MA and the $84,000–$85,000 band, which would strengthen the case for a durable uptrend.

    Frequently Asked Questions

    What caused Bitcoin’s rapid move above $85,000?

    The surge was driven by a cascade of short-position liquidations. Glassnode data shows a large concentration of short bets between $82,000 and $86,000. When price failed to reverse sharply in that zone, short sellers bought back $BTC to cover, creating a self-reinforcing upward spiral.

    Why is the 365-day moving average so important?

    The 365-day moving average (currently ~$83,000) is a widely watched long-term trend indicator. CryptoQuant and many institutional analysts treat a sustained break above this level as a primary signal that the bear market has ended and a new bull market may be underway.

    What needs to happen for the bullish case to strengthen?

    Analysts will look for Bitcoin to hold above the 365-day MA and the $84,000–$85,000 range on daily closes. Sustained support could trigger additional buying from trend-following algorithms and institutional investors, amplifying momentum.

  • Analyst Behind Viral Model Reveals Bitcoin’s Next Bullish Target

    Analyst Behind Viral Model Reveals Bitcoin’s Next Bullish Target

    Key Highlights

    • Bitcoin has closed above the 50-week moving average (~$79,000), with the next technical target at the 100-week moving average (~$89,000).
    • Analyst PlanB declares the Bitcoin bear market over, citing August’s close at $78,571 and recovery across multiple market indicators.
    • Profitable Bitcoin supply surged from 50% to 72%, while the monthly RSI climbed from 41 to 51, signaling strengthening momentum.

    Bitcoin Breaks Key Technical Barrier as PlanB Signals Bear Market End

    Bitcoin’s price action has crossed a critical threshold, closing above the 50-week moving average near $79,000 and trading around $81,000 at the time of analysis. Widely followed pseudonymous analyst PlanB highlighted the development, stating, “Bitcoin closed above the 50-week moving average. The next target is the 100-week moving average, around $89,000.” This technical milestone positions the asset for a potential test of the longer-term 100-week average, a level historically associated with major trend transitions.

    Multiple On-Chain and Momentum Indicators Confirm Recovery

    Beyond the moving average crossover, PlanB emphasized a confluence of supporting data points. The analyst noted that August concluded with Bitcoin at $78,571, marking a turning point after which various market indicators began to recover. Notably, the percentage of Bitcoin supply in a profitable state has jumped significantly from 50% to 72%, reflecting a broad improvement in holder economics. Simultaneously, the monthly Relative Strength Index (RSI) has risen from 41 to 51, crossing above the neutral 50 threshold and indicating a shift from bearish to bullish momentum on the macro timeframe.

    Analyst Concludes Bottom Is Likely In

    Synthesizing these technical and on-chain metrics, PlanB assessed that the bear market in Bitcoin has ended and that the cryptocurrency may have already passed its cycle bottom. The combination of price reclaiming the 50-week moving average, expanding profitable supply, and improving momentum oscillators constructs a technical framework that supports bullish expectations for the upcoming period. While the analyst’s commentary carries weight in the crypto community, the standard disclaimer applies: This is not investment advice.

    Why This Matters

    The 50-week and 100-week moving averages are among the most watched long-term trend filters in Bitcoin technical analysis. A sustained close above the 50-week average has historically preceded extended uptrends, while the 100-week average often acts as a “line in the sand” between bull and bear market regimes. The simultaneous improvement in realized profitability metrics—from 50% to 72% of supply in profit—suggests a reduction in unrealized losses across the network, which typically reduces selling pressure. The monthly RSI reclaiming 50 adds a momentum confirmation that has been absent during the recent consolidation phase. Together, these factors align with a classic market structure shift from accumulation to markup, though macroeconomic risks and regulatory developments remain external variables.

    Frequently Asked Questions

    What are the specific price levels for the 50-week and 100-week moving averages mentioned by PlanB?
    The 50-week moving average sits around $79,000, which Bitcoin has now closed above. The next target, the 100-week moving average, is approximately $89,000.
    What on-chain metric showed the most dramatic improvement according to the analysis?
    The percentage of Bitcoin supply in a profitable state increased from 50% to 72%, a 22-percentage-point jump indicating significantly healthier holder economics across the network.
    Does PlanB’s analysis constitute a price prediction or investment recommendation?
    No. The analysis presents a technical assessment based on moving averages, profitability ratios, and momentum indicators. The source explicitly includes the disclaimer: “This is not investment advice.”