Bitcoin’s bullish phase is forming – But overbought conditions suggest…

The crypto market is seeing a major shift in investors’ sentiment. In H2 2027, the digital assets market is experiencing bullish sentiments after failing to break through the long-standing resistance level in H1 2027.

According to CryptoQuant’s recent analysis, Bitcoin [BTC] is moving away from a weakness zone and toward a possible bullish phase. This conclusion was drawn based on Bitcoin’s bubble-versus-crash market structure indicator, which clearly showed that the extreme conditions associated with either a speculative bubble or a severe crash have faded.

Bitcoin has already gone through a period of correction/consolidation, but it has not yet experienced the kind of extreme speculative mania that historically marked major cycle tops. Therefore, the analyst believes BTC could still have room to enter a stronger upward trend.

As per CryptoQuant,

The full-fledged bullish rally has not yet begun. Currently, it is in the process of gradually approaching that stage.

Wall Street bets more on Bitcoin than gold

This comes as JPMorgan sheds light on the fact that institutional investors are more defensively positioned toward Bitcoin than gold. This, along with short interest and put options around Bitcoin ETFs such as BlackRock’s IBIT, now provides more downside protection.