Four indicators signal Bitcoin's return to complete bullish strength
Bitcoin's strength continues to grow as robust blockchain activity, rebounding stablecoin liquidity and authentic spot market demand indicate sustained price appreciation.
Cryptocurrency market observers indicated that Bitcoin's (BTC) potential for price appreciation remained strong despite experiencing a 2.5% pullback from its multi-month peak of $82,800 achieved on May 6.
Key takeaways:
- Bitcoin has effectively re-entered expansion phase as the Bull Market Support Band converted to support.
- Bitcoin's Stablecoin Supply Ratio has bounced back from historic lows, signaling fresh liquidity is entering the market.
- Bitcoin's spot taker CVD turns positive, indicating authentic spot demand has returned
Bitcoin's price strength continues to expand
Wealth management firm Swissblock indicated that Bitcoin remains "still at full momentum," notwithstanding the minor pullback from its latest peaks.
According to Swissblock, the most recent price surge demonstrated that Bitcoin price momentum was "successfully reignited and pushed back into full expansion territory."
Bitcoin is currently consolidating within the cost-basis battlefield, where the true market mean and the short-term holder cost basis approximately at $80,000 function as support while the active realized price at $85,000 serves as resistance.
At the same time, "momentum remains structurally strong," according to the wealth management firm, which also noted:
"As long as momentum stays above the transition area, bulls retain control."
Supporting this assessment, market analyst The Great Mattsby highlighted that Bitcoin's Bull Market Support Band has successfully converted into support, while the 21-week exponential moving average has moved back above the 20-week simple moving average.
"The trend has officially flipped back to bullish."
Bitcoin liquidity metrics indicate "strong recovery"
The Stablecoin Supply Ratio (SSR) has rebounded from its lower historical range beneath 10, the identical zone that identified market bottoms in mid-2021, 2022 and mid-2023.
On every occasion the SSR rebounded from these low levels, Bitcoin escaped from its range and initiated a powerful rebound, as illustrated in the chart below.
The rebounding SSR indicates that stablecoin liquidity is flowing back to exchanges once more, potentially establishing the foundation for another bullish run for BTC price.
The Binance Stablecoin Supply Ratio Oscillator communicates the identical narrative. The chart presented below demonstrates that Bitcoin's 90D Stablecoin Supply Ratio Oscillator has returned into positive territory, hitting 12-month highs at 2.8.
"This reflects a strong recovery from the negative zone, with stablecoin purchasing demand becoming more active during the current rebound," CryptoQuant analyst Zizcrypto stated in a Tuesday QuickTake note, further adding:
"For context, the oscillator previously reached 2.43 in May 2025 and 4.00 in November 2024 — both during stronger market phases."
Bitcoin's transaction activity reaches 20-month highs
The robustness in BTC price is mirrored in Bitcoin's network activity, with daily transaction count climbing by 116% in May to 831,450 on May 9.
This particular metric was previously at comparable levels in September 2024, prior to Bitcoin subsequently rallying beyond $100,000 throughout the wider market surge that followed the US presidential election.
Bitcoin's network activity is "more active than when it was at $100K," market analyst CW8900 stated in an X post on Saturday, further noting:
"The network is already showing signals of a bull market."
Bitcoin's daily active address count has similarly risen, growing by 7.1% throughout the last week to 707,719, while total fee volume jumped 37% to $279,300 during the same timeframe, based on Glassnode's latest Market Pulse report.
"Such a significant increase suggests heightened onchain activity, potentially signaling bullish market conditions."
Rising transaction count, daily active addresses and fees indicates more users are engaging with the network. It points to elevated network activity, frequently correlating with growing interest and market confidence.
Bitcoin's "real demand" has returned
Bitcoin's 90-day spot taker cumulative volume delta (CVD), a measurement of the difference between buy and sell volume across three months, reveals a "significant shift in capital flow structure," based on CryptoQuant analyst Rei Researcher.
The indicator flipped positive (green bars in the chart presented below) in early May as the price pushed above the $78,000 resistance and has stayed positive since.
"Taker Buy Dominance in the spot market indicates buying pressure from 'major players' (Whales/Institutions) looking to hold $BTC rather than just speculating via derivatives," the Rei Researcher stated in a recent Quicktake note, further explaining:
"Real demand has prevailed. When bulls are willing to pay higher prices to own $BTC, a sustainable uptrend usually follows."
Should the CVD remain green, it may establish the foundation for another rally as witnessed in the past. A comparable occurrence in May 2025 accompanied 65% BTC price gains.
In the meantime, Bitcoin's spot demand is additionally accelerating, with spot CVD climbing 47% to $62 million from $42 million a week ago, supplementary data from Glassnode reveals.
"This increase indicates a significant uptick in buying aggression among market participants," the onchain data provider stated, further noting:
"This behavior implies heightened conviction, with aggressive traders actively setting higher market prices, potentially signaling continued bullish momentum."
As Cointelegraph reported, Bitcoin's market value to realized value (MVRV) ratio indicates BTC's market structure is strengthening, which may be an early sign of a new bull market.