Bitcoin traders have returned to accumulation mode this week after a key CryptoQuant market cycle indicator turned green for the first time since March 2023. The trigger has fueled speculation that Bitcoin may have already exited its correction phase as broader conditions improve.
Indicator Flashes 'Early Bull' Signal
According to CryptoQuant analyst I. Moreno, Bitcoin's Bull-Bear Market Cycle Indicator entered the 'early bull' zone after spending months in bearish territory. Historically, similar transitions have appeared when Bitcoin began rebuilding momentum after prolonged weakness.
CryptoQuant charts show the indicator climbing steadily after months in negative territory. Moreno explained on X that a green signal often means the hardest part of a correction is likely over. Many traders now believe Bitcoin could be preparing for a bigger move if the current structure holds.
In both 2019 and 2023, the indicator shifted green shortly before Bitcoin entered broader bullish phases. Those recoveries eventually developed into major rallies. The latest setup also sees Bitcoin trading well above previous cycle lows, encouraging some analysts to argue that long-term bullish momentum remains intact.
Recovery Momentum Building on Charts
Detailed CryptoQuant data show Bitcoin's internal market structure gradually improving between January and May 2026. During that stretch, the Bull-Bear indicator climbed higher while Bitcoin formed stronger support near the $80,000 region. The 30-day moving average moved toward neutral, and a small green section appeared on the far right, confirming the first early bull signal in over two years.
The indicator combines multiple market metrics, not just price. Many traders use it to gauge whether conditions support recovery or continued weakness. However, Moreno also flagged a failed signal in 2022 when Bitcoin briefly entered the early bull zone before momentum collapsed and bearish conditions returned, leading to further decline.
Current conditions appear more stable than that period. Institutional activity has remained consistent, and spot Bitcoin ETF demand continues to support long-term participation. Long-term holders have shown fewer signs of aggressive selling during recent volatility. Traders are watching whether Bitcoin can sustain higher lows while the indicator stays green. If momentum continues strengthening, analysts believe the market could transition deeper into a confirmed bullish phase.