Bitcoin's bear market has already ended, and now is an appropriate time to add to positions, according to a new analysis.

Alex Thorn, head of research at Galaxy Digital, wrote in a report released on Oct. 26 that Bitcoin's bear market ended in June and has now entered an accumulation phase ahead of a new upswing.

The report cited technical indicators. Bitcoin stopped falling near its 200-week moving average in June and reclaimed its 50-week moving average in September. Similar patterns have appeared in the past after bear markets ended, the report said.

The report also pointed to easing selling pressure as a positive sign. Net long positions held by asset managers in CME Bitcoin futures have dropped 57% from last year's peak, according to the report. By contrast, holdings in spot Bitcoin exchange-traded funds have risen by about 87,000 tokens since the June low.

Thorn said Bitcoin's investment appeal has strengthened. Concerns are growing that fiat currencies will be diluted as U.S. fiscal deficits and debt increase. That could further highlight the value of Bitcoin's limited supply.

He also highlighted rising interest in stablecoins and tokenization in financial markets. In 2015-2016 and 2018-2019, the financial industry's focus shifted from Bitcoin to blockchain technology, and Bitcoin later surged, Thorn wrote. He said the current market backdrop resembles the late stages of past bear markets.

Bitcoin has already shown it can reach $125,000, Thorn added. There is no reason it cannot reclaim that level, with market conditions now supportive, he said.