In four of the five completed bear markets where Bitcoin fell below that ceiling, the first successful weekly reclaim marked the bottom.
The exception came in 2021 and 2022, when Bitcoin briefly reclaimed the level twice before falling to a fresh low.
Galaxy’s drawdown accounting puts the current bear market’s start near a $124,800 peak in October 2025 and its low near $58,500 at the end of June, a decline of roughly 53%.
More than a chart pattern
Bitwise’s Sept. 1 research argues that Bitcoin’s reclaimed price levels, combined with its Long-Term Holder Supply and Risk-On Transition models, point to a new bull market cycle already underway, provided those reclaimed levels hold.
That combination makes the bullish case broader than one technical line crossing another.
CryptoQuant analyst Darkfost said Sept. 2 that Bitcoin’s apparent demand, a measure of whether fresh buying is absorbing newly available supply, briefly turned negative again after its short recovery earlier in August faded.
Wallets holding more than 100 $BTC added roughly 60,000 $BTC during that same month even as smaller holders sold, and Glassnode’s data shows real spot participation and ETF inflows behind the rally’s earlier stages.
Bitcoin’s buyer base is real, and it has not yet grown large enough to absorb sellers as price keeps climbing.
Several methods point to the same price band
Glassnode’s latest on-chain research identifies $83,000 to $86,000 as a dense band of long-term-holder supply, the level at which the current relief rally has stalled.
At comparable prices, 68% of Bitcoin’s supply now sits in profit, up from 65% during a similar test in May, meaning more coins could be sold into any further strength.
21Shares frames roughly $81,000 to $82,000 as the line separating a genuine turn higher from an ordinary bear market bounce, with $85,000 and eventually $98,000 as the next markers above it.
None of these frameworks arrived at the same number through the same method. Nonetheless, Galaxy’s moving average, Glassnode’s supply data, and 21Shares’ regime band all independently cluster in the same broad $81,000 to $86,000 zone, a strong signal.
The rally’s origin invites a closer look
Glassnode traces the current move back to a short squeeze in mid-August that pushed Bitcoin from roughly $63,500 toward $80,000.
That leg came alongside about $2.8 billion of ETF inflows, falling futures open interest, and contained funding rates, a pattern more consistent with spot buying and short covering than with leveraged longs chasing price.
ETF intake later peaked near $290 million a day, though secondary-market turnover on those same ETFs stayed closer to $3 billion daily, a quieter pace than prior expansion phases showed.
The Treasury’s Aug. 19 move to at least double its long-end liquidity-support buybacks helped fuel the initial leg.
QCP has cautioned that operations function as liquidity support, well short of full monetary easing, and Fed Governor Christopher Waller has pointed to fiscal strain keeping Treasury yields elevated in the high-4% range.
Bitcoin needs a weekly close above the 50-week moving average, since Galaxy’s historical signal has never been satisfied by an intraday wick alone.
It also needs to clear and hold $83,000 to $86,000, genuinely absorbing the long-term-holder supply Glassnode has identified over a sustained stretch.
Apparent demand, ETF flows, and US spot activity need to turn convincingly positive on their own, past the mixed readings seen so far.
The reclaimed levels also need to survive the profit-taking that comes with more of the supply moving into the green.
Whether the reclaim holds or joins 2021-22 as the exception
The bull case has Bitcoin closing the week above the 50-week moving average. It then clears $83,000 to $86,000 on spot demand strong enough to push through the same level where Glassnode says the current relief rally has stalled.
Under that path, $90,000 comes into view next, followed by the prior 2026 high near $98,000. Galaxy’s historical signal joins its four successful predecessors, leaving the 2021-22 episode as the sole exception on record.
The bear case has Bitcoin failing the weekly close entirely or losing support back near $76,000 to $78,000. That would send it sliding toward $71,800 and eventually the $62,000 to $65,000 zone that marked the accumulation base beneath this year’s rally.
In that scenario, the 2021-22 exception gets company, and the August rally reads in hindsight as forced short covering that ran out of room once real demand failed to show up behind it.
Bitcoin crossed the line that has historically marked the end of its bear markets. The next few thousand dollars will decide whether enough buyers showed up to prove it.
