Bitcoin's price has surged past $60,000, with the bull-bear cycle indicator flipping bullish, igniting hopes for a powerful rally after a volatile week in the market.

Bitcoin Bull-Bear Indicator Turns Bullish

After three days of flashing red as Bitcoin's price fell to levels not seen since February, the bull-bear market cycle indicator, which tracks investor attitude stages, has switched to show bullish circumstances, per Cointelegraph.

“Most Bitcoin on-chain cyclical indicators that were hovering near the borderline have now shifted back to signaling a bull market,” noted CryptoQuant founder and CEKi Young Ju in an Aug. 9 X post.

"Bitcoin is still in a bull market," stated the anonymous crypto trader PlanB.

Ju asserted that the discount on Bitcoin was only valid for three days. The report follows "Crypto Black Monday," a precipitous decline in Bitcoin's value to $49,751 on August 5. For the first time since February, it fell below $50,000.

Bitcoin Price Surges Above $60,000

According to data compiled by CoinMarketCap, Bitcoin remained below the important $60,000 barrier until August 8th.

Bitcoin is now valued at $60,732 as of publishing.

Prior to January 2023, just after the FTX collapse, the bull-bear market cycle indicator for Bitcoin did not show a bear signal.

On August 6, it was joined by other adverse sentiment indicators, such as the Crypto Fear & Greed Index, which reached its lowest "Extreme Fear" score since the FTX crisis at 17.

The result has since returned to the "Neutral" range of 48.

Experts See Bear Trap in Recent Dip

Some Bitcoin investors think the latest price drop was a bear trap, in which seasoned traders artificially decrease the asset's price to lure short-sellers because of the rapid reversal.

A number of experts are pessimistic about Bitcoin's recent slump, while others see it as a pattern preceding bull runs.

"To ideally time the next bull market entry, we aim for Bitcoin prices to fall into the low 40,000s," said 10x Research head of research Markus Thielen on August 7.

According to research published on August 6th by Cathie Wood's investing business, Ark Invest, the key price supports for Bitcoin are $52,000 and $46,000.

At the same time, seasoned trader Peter Brandt said that Bitcoin's "decline since halving is now similar to that of the 2015-2017 halving bull market cycle," implying that a bull run could proceed.