Grayscale Research Identifies Bitcoin Price Floor as Springboard for Early Bull Run

By: crypto insight|2026/05/21 19:09:54

BTC

Key Takeaways:

Bitcoin has established a market bottom in the $65,000-$70,000 range, indicating potential for a fresh bull run, according to Grayscale Research.
The CryptoQuant Bull Score Index has moved to a neutral position, signifying emerging market stabilization.
Enhanced liquidity due to U.S. Federal Reserve actions supports Bitcoin’s recent rally, reflecting historical trends.
Recent buying surges and a 6% rise in BTC futures open interest highlight trader optimism amid ongoing geopolitical tensions.
The on-chain activity demonstrates increased investor interest and earlier accumulation compared to past market cycles.

WEEX Crypto News, 2026-04-22 12:13:10

Bitcoin’s Price Stability Signals a Potential Upsurge

Bitcoin has formed a market bottom, setting the stage for a potential bull market, as outlined by Grayscale Research. On-chain data indicates that recent buyers are returning to breakeven, following a 20% increase from the February lows of $63,000. This price movement reinforces the prediction of a resilient bottom in the $65,000–$70,000 range, easing selling pressure and boosting investor confidence. A rise beyond $74,000 could push even recent buyers into a positive profit position, signaling the initial phase of a bull market.

Assessing the Neutral Stance of Bull Market Indicators

CryptoQuant’s Bull Score Index turning neutral for the first time during this bear phase points towards potential stabilization. Although past shifts to neutrality in 2022 were short-lived, current signs indicate a possible trend reversal, bolstered by spot Bitcoin ETF inflows. This influx reflects increasing investor accumulation earlier than in previous cycles. The data also dispels the notion that only MicroStrategy is buying, as multiple institutions are actively involved in the market.

U.S. Federal Reserve Liquidity Propels Bitcoin’s Momentum

Bitcoin’s current rally is underpinned by increased liquidity from the U.S. Federal Reserve, resonating with historical patterns where Bitcoin mirrored U.S. liquidity trends. Technical analysis shows Bitcoin surpassing the bear-market resistance band, a critical level historically linked to major market shifts. This liquidity boost is a key factor in Bitcoin moving past its previous restrictions, providing a solid base for renewed price gains.

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Impact of Geopolitical Events on Bitcoin Stability

Bitcoin’s price recently rose nearly 3% to $77,990, influenced by geopolitical developments such as President Donald Trump’s extension of the U.S.-Iran ceasefire. This extension eased oil prices below $90 per barrel and enhanced trading activities, resulting in a 14% spike in trading volumes. The derivatives market witnessed a 6% increase in BTC futures open interest, highlighting the market’s growing optimism amidst geopolitical tensions.

On-Chain Evidence of Market Enthusiasm

CoinGlass data highlights significant buying activity within the derivatives market, sparking Bitcoin’s recovery. The rise in BTC futures open interest across platforms like CME and Binance signals bullish sentiment among traders. As Bitcoin nears its 100-day SMA of $87,735, the price movement underscores the current market’s anticipation of further gains.

[Place Image: Chart showing Bitcoin price movement and derivatives market activity]

FAQ

What price range indicates Bitcoin’s market bottom as per Grayscale Research?

Grayscale Research identifies the $65,000-$70,000 range as Bitcoin’s market bottom, signaling a potential start of a new bull run based on easing selling pressure and emerging investor confidence.

How does the CryptoQuant Bull Score Index influence the Bitcoin market outlook?

The index’s shift to a neutral position in this bear market suggests potential market stabilization and aligns with increasing spot Bitcoin ETF inflows, indicating rising investor interest.

Why is U.S. Federal Reserve liquidity significant for Bitcoin’s current rally?

Rising U.S. Federal Reserve liquidity echoes historical trends where Bitcoin price increases follow liquidity boosts, marking significant shifts in market dynamics.

How do geopolitical events affect Bitcoin prices?

Recent geopolitical developments, such as the U.S.-Iran ceasefire extension, have positively impacted Bitcoin prices by influencing trading volumes and market sentiment.

What does the increase in BTC futures open interest indicate about market sentiment?

A 6% rise in BTC futures open interest reflects enhanced trader optimism and bullish sentiment towards Bitcoin, supported by on-chain evidence and geopolitical factors.