Bitcoin Reclaims 365-Day Average as Bull Market Signal
Bitcoin has closed above its 365-day moving average for the first time since March 2023, according to CryptoQuant. The average stood near $80,500, and CryptoQuant said similar breakouts in 2019 and 2023 preceded major Bitcoin rallies and broader market-cycle shifts.
CryptoQuant’s Bull Score Index and Bull-Bear Market Cycle Indicator had already moved towards an early bull-market phase by mid-August. The latest Bitcoin price move aligns with those on-chain signals, although the firm stressed that the 365-day moving average is a long-term cycle indicator rather than a short-term trading tool.
Bitcoin has also broken through a major supply zone between $76,000 and $81,000, where long-term holders and wallets inactive for more than seven years had concentrated holdings. The next significant resistance and supply area is between $88,000 and $90,000. Traders will monitor whether Bitcoin can sustain its move above the 365-day average.
Key downside support is located near the 200-day moving average at about $70,600, as well as the reclaimed 365-day average. Despite the bullish market-cycle signal, CryptoQuant warned that short-term pullbacks remain possible.
Bullish
The news is bullish because Bitcoin has reclaimed its 365-day moving average, a long-term level that CryptoQuant associates with major market-cycle transitions. Historical breaks above this average in 2019 and 2023 preceded substantial advances, while sustained losses below it coincided with major market downturns. The move also follows improving readings from CryptoQuant’s Bull Score Index and Bull-Bear Market Cycle Indicator, adding confirmation from on-chain data.
Bitcoin’s clearance of the $76,000-$81,000 supply zone may reduce overhead selling pressure and improve market momentum. A successful move towards the next supply area at $88,000-$90,000 could attract trend-following traders and reinforce bullish sentiment. However, the signal is not a guarantee of uninterrupted gains. Short-term traders should watch for rejection near $88,000-$90,000, while a failure to hold the 365-day average could weaken the breakout. The 200-day moving average near $70,600 remains an important downside reference. Overall, the development supports a bullish medium- to long-term outlook, with volatility and pullback risk still elevated in the short term.