According to Woofun AI, CryptoQuant determined that Bitcoin is in the early stages of a new upward cycle, and strong demand and improved liquidity have laid the foundation for the market.
Prices and technology showed a significant recovery trend. Since August 17, Bitcoin has risen by 24% to surpass $80,000, hitting a high since mid-May. The CryptoQuant “bullish index” soared from 30 to 80 in a week, hitting a new high since October 6, 2025. Of the 10 indicators monitored, 8 sent bullish signals, confirming that the market is improving not only in terms of price.
The flow of funds showed increased momentum from the bulls. Spot demand grew the fastest since the end of December, and for the first time since the beginning of October 2025, spot and futures demand grew simultaneously. Data compiled by Woofun AI shows that from August 17 to 21, the net inflow of US Bitcoin spot ETFs was 1.92 billion US dollars, and the value was positive for all five trading days. Average holdings rose to 3,820 bitcoins on August 21 and 7, the highest since the beginning of January this year.
Additionally, Binance recorded a net USDC inflow of $4.7 billion on August 24, supplementing dollar-linked liquidity and making the upward base go beyond mere speculative trading.
However, technical resistance and profit settlement pressure remain. Bitcoin's daily closing price needs to hold steady at the 365-day moving average (around $83,000) to confirm the trend. The current unrealized profit margin rose to 20.5%, the highest since June 2025; on August 20, the realized profit of large investors reached US$614 million. Potential selling pressure increases as more Bitcoin, Ethereum, and Ripple are deposited on exchanges, but this does not necessarily directly cause the price to drop.