Woofun AI reports that CryptoQuant has identified early stage of a new bull cycle for Bitcoin, attributing this shift to stronger demand and improving liquidity that provide a healthier market foundation.

BTC gained about 24% from August 17, climbing to $80,000, its highest level since mid-May. Consequently, the Bull Score rose from 30 to 80 in one week, reaching its strongest reading since October 6, 2025. Eight of the firm's ten underlying indicators are now classified as bullish, suggesting the improvement extends beyond price momentum alone.

Apparent spot demand recorded its fastest monthly expansion since late December, while spot and futures demand strengthened together for the first time since early October 2025.

Woofun AI data shows US spot Bitcoin ETFs attracted about $1.92 billion between August 17 and August 21, with all five sessions posting positive net flows. The seven-day average reached 3,820 BTC on August 21, the strongest reading since early January. Binance also recorded more than $470 million in net USDC inflows on August 24, adding fresh dollar-linked liquidity.

These figures matter because Bitcoin's rally is no longer relying solely on speculative futures activity. Stronger spot demand, ETF allocations and exchange-based stablecoin liquidity can create a broader base for price appreciation when buyers continue to absorb available supply.

However, a technical test remains: a daily close above the 365-day moving average, currently near $83,000, is required for a new bull-cycle reading to confirm a sustained trend.

Selling pressure remains the main risk, as Trader unrealized profit margins reached 20.5%, their highest level since June 2025. Large holders realized a record $614 million in profits on August 20, while higher deposits of Bitcoin, Ether and XRP onto exchanges point to potential profit-taking. Although exchange inflows can increase available sell-side supply, they do not guarantee a decline.