The crypto market may be on the cusp of a new bullish cycle, according to analysts at CryptoQuant. They point to several indicators, including the CQ PnL Index, which tracks retail investor activity.

Bitcoin's rally in early 2023 hit a roadblock at $23,400, resulting in a consolidation phase. The brief pause allowed the price to recover momentum before attempting a breakout above the resistance at $23,400, signaling renewed buying activity and a potential continuation of the rally.

The CryptoQuant PnL Index is a tool to monitor the movements of retail investors, and it appears that they are driving this bull market. In the past, the PnL index crossing over has signaled the start of a bull market.

Notably, large holders of bitcoin (whales) have yet to sell large amounts of coins, and there's been a recent uptick in sales from long-term holders and miners.

Additionally, while large holders have not yet sold significant amounts of coins, there has been an increase in the number of long-term holders selling 12-18 month old coins, and miners have also recently sold a significant amount of bitcoin. This suggests that long-term holders and miners are becoming more willing to sell.

In addition, miners also sent a considerable amount of bitcoin into exchanges (5,592 BTC on January 19) once prices exceeded $20K.