CryptoQuant: Bitcoin Analysts Bullish as 2023 Rally Begins

Bitcoin Analysts Exhibit Stronger Bullish Sentiment Than at 2023 Bull Market’s Start, Says CryptoQuant

Bitcoin’s rebound from its summer lows has coincided with a notable shift in analyst sentiment, a pattern that CryptoQuant suggests closely mirrors the nascent stages of the previous major bull cycle.

In a recent report shared with CryptoPotato, the analytics firm observed that sentiment across Bitcoin (BTC), Ethereum (ETH), BNB, XRP, and Solana (SOL) has transitioned from bearish to bullish since early July. Crucially, CryptoQuant stated that this shift has been “deeper, faster, and broader” than the turnaround witnessed between late 2022 and early 2023.

CryptoQuant’s 30-day Analyst Consensus Index reached a low of -18.3 on July 2, a period when BTC’s price had dipped below $58,000. By July 27, as the cryptocurrency traded around $63,800, the index had climbed above zero. This significant increase occurred just weeks before Bitcoin surged towards the $80,000 mark in late August.

Currently, the index stands at +49.2, with the proportion of bullish analysts experiencing a dramatic surge from under 40% to nearly 85%. CryptoQuant noted this figure represents 137 out of 164 surveyed voters. The shift appears to be more than just an influx of new bullish voices; among the 85 analysts who held a BTC call at both the beginning of July and currently, 47 have moved from a bearish to a bullish stance. In contrast, only five have adopted a bearish outlook.

The report drew a comparison between the current environment and the start of the previous major cycle. In 2022-2023, BTC’s consensus index rose by 36 points over 103 days, accompanying a roughly 65% price gain. The current trend presents a stark contrast: sentiment has soared by 67 points over the same duration, despite the cryptocurrency experiencing a more modest 33% rally from its July low.

Consequently, CryptoQuant concluded that analysts are currently positioned further ahead of Bitcoin’s price trajectory than they were at the commencement of the 2023 bull market. This trend is not isolated, as large Bitcoin holders have recently begun reaccumulating significant portions of the asset after months of selling. Concurrently, CryptoQuant’s Bull Score Index saw a substantial jump from 20 in July to a high of 90 in September.

Ethereum’s consensus index has climbed from +0.1 to +58.3, with 88% of analysts now expressing a bullish outlook. Solana exhibits the strongest reading among the five examined assets, standing at +72, with 31 out of 34 analysts (91%) favoring a bullish stance.

This also signifies a notable departure from the previous cycle, where ETH and SOL lagged behind BTC’s sentiment recovery in 2022-2023. This time, however, they have taken the lead.

XRP has also undergone a dramatic reversal. Its consensus index fell to -8.0 on August 20, coinciding with its multi-year low of $0.99. Within weeks, the index rebounded to 36.7% as analysts turned bullish following the token’s price surge to over $1.50.