The crypto market sentiment has shifted in H2 2027 after failing to break resistance in the first half of the year. Data from CryptoQuant indicates Bitcoin is moving away from a weakness zone into a potential bullish phase, as its bubble-versus-crash indicator shows conditions for a speculative bubble or severe crash have faded. However, institutional investors are more defensively positioned toward Bitcoin than gold, according to JPMorgan. Bitcoin currently trades at $78,240.79 after a 2.5% daily hike, but its RSI sits in the overbought zone, signaling caution.
Bitcoin is showing signs of a potential bullish shift, according to on-chain data. CryptoQuant’s analysis indicates the asset is moving away from a weakness zone, as extreme bubble or crash conditions have faded. “The full-fledged bullish rally has not yet begun. Currently, it is in the process of gradually approaching that stage,” the firm noted.
Institutional investors are hedging more aggressively for Bitcoin than for gold. JPMorgan stated that short interest and put options around spot Bitcoin ETFs like BlackRock’s IBIT now provide more downside protection. Gold ETFs have recovered more of their 2026 outflows, while Bitcoin ETFs see heavy put-option activity. This hedging, if unwound during a rally, could trigger a market impact of hedge unwinding and short covering potentially worth $1 trillion.
Bitcoin was priced at $78,240.79 at press time, up 2.5% in 24 hours. However, its Relative Strength Index (RSI) entered the overbought zone, suggesting bears may soon challenge the bulls. The widening Bollinger Bands also confirm high volatility, while a cautious Q4 outlook as stated from the Federal Reserve’s 25 basis point rate hike, rising Treasury yields, and a stronger U.S. dollar threaten liquidity and risk assets.
