Bitcoin Profit Metric Repeats History With 2026 Bear Market Now Reportedly ‘Over’

In line with some metrics, Bitcoin (BTC) has ended its bear market as a composite BTC value indicator flips bullish for the primary time since October 2025.

Key factors:

• Bitcoin has exited its 2026 bear market, Ki Younger Ju says as a profitability metric prints a optimistic studying of 0.042.
• The breakout from adverse to optimistic numbers repeats a bull-market restoration sign additionally seen in early 2023.
• Issues stay over inadequate market liquidity to help a macro BTC value development change.

Bitcoin revenue metric gives first bull sign in ten months

The newest information from onchain analytics platform CryptoQuant has led its CEO, Ki Younger Ju, to name time on Bitcoin’s 2026 bear market.

In an X post on Wednesday, Ki flagged the primary optimistic studying 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 analysis — and measures the P&L Index’s distance from its 365-day shifting common. The P&L Index itself consists of a number of onchain profitability metrics: the market worth to realized worth (MVRV) ratio, web unrealized revenue/loss (NUPL) and the spent output revenue ratio (SOPR). Collectively they supply an total image of Bitcoin traders’ realized and unrealized income and losses. Values above zero for the Bull/Bear indicator level to bullish phases within the BTC value cycle as profitability improves. 

Present cycle lows got here on Feb. 5 as BTC/USD fell to $60,000, with a studying of -1.244 comparable to “excessive bear” circumstances. As of Aug. 26, the newest date for which full information is accessible, Bull/Bear displayed a optimistic studying of 0.042, inserting it in its “bull” bracket.

Bitcoin Bull/Bear Market Cycle Indicator. Supply: CryptoQuant

The mix of P&L metrics and their 365-day shifting averages has confirmed correct at confirming macro BTC value development adjustments. Ki notes that Bull/Bear likewise referred to as the top of the earlier bear market as upside returned in early 2023.

Bitcoin Bull/Bear Market Cycle Indicator historic information. Supply: CryptoQuant

Misgivings over BTC value energy proceed to mount

Bitcoin has seen the sluggish return of bull indicators from numerous indicators in current weeks, together with the relative strength index (RSI), a restoration for which was additionally current on the finish of 2022.

Associated: Supply absorption ‘key question’ as Bitcoin fails to reclaim $80K: Analysis

Consensus amongst market contributors over Bitcoin’s current upside marking the top of its macro downtrend is certainly not unanimous. Beforehand, Cointelegraph reported on issues {that a} lack of demand might see BTC/USD revert to draw back, with multiple liquidity hurdles lined up instantly above spot value. 

In ongoing market commentary, dealer and analyst Rekt Capital argued that the August month-to-month shut can be “pivotal” for the destiny of the restoration, referring to a possible breakout from a downward-sloping resistance trend line in place since October final 12 months.