Bitcoin bull market reversal: Bitcoin shows signs of a potential bull market reversal as its Cycle Momentum indicator turns positive after eight months. See what it means for BTC.
Bitcoin (BTC) may be entering a critical turning point after a key market momentum indicator moved back into positive territory for the first time in eight months.
According to data from CryptoQuant cited by Finbold, Bitcoin’s Cycle Momentum indicator has shifted above zero, a move that has historically been associated with the beginning of broader bullish market cycles.
Bitcoin Momentum Turns Positive
Bitcoin’s market capitalization has increased by more than $280 billion over the past 30 days, reaching approximately $1.54 trillion on September 2, 2026.
The Bitcoin Cycle Momentum metric compares CryptoQuant’s Profit and Loss (PnL) Index with its 365-day moving average. When the indicator moves above zero, it can signal that bullish momentum is returning to the market.
The indicator had remained in negative territory for roughly eight months before its recent reversal.
CryptoQuant analyst Gaah noted that the signal still needs further confirmation. According to the analysis, Bitcoin Cycle Momentum reaching the 20–30 range in the coming weeks while maintaining its upward trajectory would provide stronger evidence of a sustained trend reversal.
Bitcoin Price Rebounds Sharply
Despite remaining down on a year-to-date basis, Bitcoin has recently staged a significant recovery.
At the time of the report, BTC was trading around $76,750, representing a decline of approximately 12.36% since the beginning of 2026. Bitcoin’s 24-hour trading volume was around $30.04 billion, showing a slight increase.
More importantly, Bitcoin had gained more than 22% over the previous 30 days, suggesting that buying pressure has returned to the market.
Institutional Demand Could Support the Rally
One of the major factors behind Bitcoin’s recent recovery has been renewed institutional spot demand.
Large market participants, including BlackRock and Strategy, have been among the companies associated with significant Bitcoin exposure and demand. Continued institutional buying could provide additional support if the broader market momentum remains positive.
Bitcoin whales may also have contributed to the recent improvement in the Cycle Momentum indicator. If the indicator continues climbing while institutional demand remains strong, Bitcoin’s current recovery could potentially develop into a larger bullish trend.
Is Bitcoin Entering a New Bull Cycle?
The latest momentum shift is encouraging for Bitcoin bulls, but it should not yet be viewed as definitive proof that a new bull market has begun.
Historically, sustained movement above zero in the Cycle Momentum model has coincided with stronger Bitcoin performance, while negative readings have been associated with bearish market conditions.
For now, traders and investors will be watching whether the indicator continues higher and approaches the 20–30 confirmation zone while Bitcoin maintains its recent price gains.
If both conditions develop, the current recovery could become an important signal that Bitcoin is transitioning from a prolonged bearish phase toward a broader bullish cycle.
Disclaimer: This article is for informational purposes only and should not be considered financial or investment advice. Cryptocurrency markets are highly volatile, and investors should conduct their own research before making investment decisions.
