Bitcoin (BTC) price is up 55% so far in 2024, including a 12.50% rise in October. The recent gains were fueled by better-than-expected Wall Street earnings and improved overall risk sentiment.
BTC/USD daily price chart. Source: TradingView
Additionally, investors are increasingly pricing in the possibility of an interest rate cut by the Federal Reserve in November, and optimism is growing further as cryptocurrency advocate Donald Trump’s chances of winning the 2024 presidential election increase.
relevant: Anthony Pompliano reveals the key catalyst for the next Bitcoin bull market.
Fundamentally, Bitcoin appears well-positioned to enter a bullish cycle through the remainder of 2024 and beyond. Meanwhile, certain technical and on-chain indicators point to similar upward prospects.
Fractal predicts that the Bitcoin price will reach $100,000 in 2025.
The first sign that Bitcoin is entering a new bull cycle comes from a two-month log chart shared by independent market analyst Coosh Alemzadeh on X.
The chart displays Bitcoin’s historical bullish stages, including a 60x increase since circa 2011, a 20x increase in 2017, and a 6x increase during the bull period of 2020-2021.
These phases follow the pattern of Bitcoin price first consolidating before a large, near-vertical rally occurs.
BTC/USD 2 month price chart. Source: Khushi Alemzadeh
As of October 2024, Bitcoin is showing signs of breaking out of a long-term consolidation phase, which often signals the start of a bull run within the parabolic channel indicated by the two red dotted lines.
Market analyst Ted Pillows echoed this sentiment, highlighting a similar breakthrough in Bitcoin’s consolidation channel.
BTC/USD weekly price chart. Source: Ted Pillow
He argues that Bitcoin’s “parabolic phase” has begun in line with its historical pattern of rapid price acceleration.
Alemzadeh’s fractal analysis predicts that Bitcoin will rise to $100,000 in 2025 and above $250,000 in the long term.
Bitcoin whale data shows pre-COVID-19 rally behavior
Another bullish signal for Bitcoin comes from on-chain data that tracks whale activity on spot exchanges.
The ‘Exchange Whale Ratio’, expressed as a 30-day moving average, currently reflects patterns last observed in 2020 following the COVID-19 outbreak. In that case, the whales aggressively accumulated Bitcoin, which preceded a massive bull market that pushed Bitcoin to all-time highs by the end of 2021.
Bitcoin exchange whale rate. Source: CryptoQuant
A similar whale accumulation pattern as of October 2024 suggests that large holders are positioning themselves for potential price increases, as CryptoQuant analyst Woominkyo noted:
“They (whales) may be positioned to benefit from potential long-term price increases following the next Bitcoin halving.”
Stablecoin dominance is declining
The third indicator focuses on the dominance of stablecoins. Market analyst Dr. Magic points out that the dominance of stablecoins such as USDT, USDC, and DAI has steadily declined since mid-2024.
Historically, when capital begins to flow out of stablecoins, it has been a precursor to massive price increases across top cryptocurrencies, including Bitcoin, as shown below.
Weekly chart of stablecoin market cap (black) versus BTC/USD (green). Source: Doctor Magic
In other words, a decline in stablecoin dominance means investors expect the value of Bitcoin to rise against the U.S. dollar, reflecting growing risk appetite and confidence in the market.
If this trend continues, it could be strong confirmation that Bitcoin’s parabolic phase is beginning as more liquidity flows back into BTC, pushing the price higher.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.