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Bitcoin Cycle Momentum Metric Turns Positive for the First Time in Eight Months

A key on-chain momentum indicator has moved back into positive territory following a 22% monthly gain in Bitcoin's market valuation.

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The Bitcoin Cycle Momentum indicator from CryptoQuant has returned to positive territory for the first time in eight months, signaling a potential shift toward a bullish market phase. The metric measures the difference between CryptoQuant's Profit and Loss Index and its 365-day moving average. The transition occurred as Bitcoin's market capitalization expanded by over $280 billion across 30 days to reach $1.54 trillion on September 2, 2026.

According to pseudonymous CryptoQuant analyst Gaah, confirmation of the reversal signal requires the indicator to reach levels between 20 and 30 in the coming weeks while price recovery continues. Historically, positive values on the model have aligned with bull market conditions, whereas negative values have coincided with bear phases.

At the time of reporting, Bitcoin was trading at $76,750, down 12.36% year-to-date despite a 22% recovery over the preceding month, with 24-hour trading volumes standing at $30.04 billion. The recent price expansion has been supported by institutional spot demand, with notable activity linked to BlackRock and MicroStrategy.

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