gaah_im, an analyst from on-chain analytics platform CryptoQuant, has flagged a warning signal from the Bitcoin Cycle Momentum indicator, suggesting a potential bearish market reversal after a prolonged bullish run.
The indicator tracks long-term moving averages of both bullish and bearish momentum. Recent readings show a gradual weakening of upward momentum, with some technical metrics approaching overbought levels that have historically preceded sharp corrections.
This warning comes as Bitcoin trades near the $82,000 level, with declining trading volumes and reduced whale activity—factors that often heighten the risk of a profit-taking pullback.
The analyst emphasizes that the signal does not necessarily confirm an imminent crash but serves as a cautionary flag for traders to manage risk. Seasonal factors, including the end-of-month and summer volatility, could amplify market movements.
Some analysts suggest Bitcoin may retest the $74,000 support level before continuing its uptrend, while others view this as a healthy correction within the broader bull cycle.