Bitcoin signals potential bull market as price reclaims 365-day moving average

Bitcoin has entered a potential bull market phase, according to data from CryptoQuant. The cryptocurrency recently crossed above its 365-day moving average, a technical signal that has historically marked the beginning of bull cycles. This is the first time the asset has reclaimed this specific moving average since March 2023.

Market activity has been influenced by several factors, including an announcement from the U.S. Treasury regarding liquidity-support buyback operations and investor interest in the debasement trade as a hedge against currency fluctuations. While Bitcoin recently traded near $86,598, analysts are looking toward the broader market for further growth.

Some market analysts suggest that the upcoming rally may be driven more significantly by altcoins than by Bitcoin itself. Projections indicate that while Bitcoin may see modest gains, altcoins could potentially outperform Bitcoin by a significant margin, potentially driven by the integration of AI agents in on-chain trading.