The Bitcoin Cycle Momentum indicator just flipped back into the green after eight straight months stuck in bearish territory. According to CryptoQuant, this could be an early sign that the downtrend is running out of steam and a market reversal could be on the horizon—even though demand hasn't picked up yet.

What happened

After months in the "red" zone, the indicator finally moved into positive territory. Analysts are linking this shift to weaker selling pressure and a recovery in momentum. Still, they're quick to point out that just turning positive isn't enough to call a trend change with confidence.

How CryptoQuant reads the signal

CryptoQuant analysts say the indicator needs to keep climbing and hit the 20–30 range over the next few weeks to really confirm a bullish scenario. Only a sustained move and hold in that zone would seriously boost the odds that the bear phase is wrapping up.

What it means for the market

This signal does increase the chances of a reversal, but there's still a risk of a "bull trap" if momentum stalls out. Investors and traders should keep an eye on Bitcoin Cycle Momentum alongside market demand: if the indicator pushes toward 20–30, the reversal case gets stronger—if it slips back, odds of renewed weakness go up.