ARK Invest analyst says it is too early to call a BTC cycle bottom

ARK Invest on-chain analyst David Puell said Bitcoin’s recent gains are encouraging, but it is still too early to confirm the cycle bottom. In an interview with CryptoQuant, Puell said clear bullish momentum has emerged for the first time in years, with the move driven by a short squeeze in the futures market. Selling pressure also appears to be fading, Puell said, although further downside remains possible. To confirm a genuine bullish trend reversal, Bitcoin would need to show a sustained pattern of higher highs and higher lows, while the SOPR indicator stays above one for several months, he said. Given September’s historical seasonal weakness, Puell added Bitcoin could move sideways in a range or undergo a correction for some time before forming a higher low. On quantum computing risks, Puell said the technology could become a major risk and theme for Bitcoin over the next five to 10 years. The biggest concern is BTC believed to be held by Satoshi Nakamoto and other long-dormant coins, which he estimated at around 1.1 million to 2.6 million BTC. Puell said he believes it would be better to redirect that supply into a security budget, or recover it through escrow and legal claims, rather than freeze it permanently.