Bitcoin’s price has experienced a significant increase of 55% in 2024, including a 12.5% gain in October. The recent surge can be attributed to the overall improvement in risk-on sentiment, driven by better-than-expected Wall Street earnings.
The BTC/USD daily price chart, sourced from TradingView, illustrates this upward trend. Furthermore, investors are increasingly factoring in the possibility of Federal Reserve rate cuts in November, influenced by the rising odds of pro-crypto Donald Trump winning the 2024 presidential election, which further boosts optimism.
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From a fundamental perspective, Bitcoin (BTC) appears to be in a favorable position to enter a bull run cycle for the rest of 2024 and beyond. Additionally, certain technical and onchain indicators suggest a similar optimistic outlook.
According to independent market analyst Coosh Alemzadeh, the initial signs of Bitcoin entering a new bull cycle can be observed in its two-month logarithmic chart, which he shared on X. The chart highlights Bitcoin’s previous bullish phases, such as a 60x increase in 2011, a 20x increase in 2017, and a 6x increase during the 2020-2021 bull run. These phases typically follow a pattern where Bitcoin’s price consolidates before experiencing a significant upward rally.
The BTC/USD two-month price chart, sourced from Coosh Alemzadeh, visually represents this pattern. As of October 2024, Bitcoin is showing signs of breaking out of its prolonged consolidation phase, which often indicates the beginning of a bull run within the parabolic channel marked by two red dashed lines.
Market analyst Ted Pillows echoes this sentiment, noting a similar breakout from Bitcoin’s consolidation channel.
The BTC/USD weekly price chart, sourced from Ted Pillows, supports the belief that Bitcoin’s “parabolic phase” has commenced, aligning with historical patterns of rapid price acceleration.
Alemzadeh’s fractal analysis predicts that Bitcoin will surpass $100,000 in 2025 and reach $250,000 in the long term.
Another positive signal for Bitcoin comes from its onchain data, specifically tracking whale activity on spot exchanges. The “Exchange Whale Ratio,” represented by the 30-day moving average, is currently displaying patterns similar to those observed after the COVID-19 crash in 2020. During that time, whales aggressively accumulated Bitcoin, preceding the massive bull run that resulted in new all-time highs by the end of 2021.
The Bitcoin exchange whale ratio, sourced from CryptoQuant, indicates a similar pattern of whale accumulation as of October 2024. This suggests that large holders are positioning themselves for potential price gains.
Additionally, the decline in stablecoin dominance is another indicator to consider. Market analyst Doctor Magic highlights that the dominance of stablecoins like USDT, USDC, and DAI has steadily decreased since mid-2024. Historically, when capital starts flowing out of stablecoins, it has signaled significant price increases across top-ranked cryptocurrencies, including Bitcoin.
The stablecoin market cap (black) versus BTC/USD (green) weekly chart, sourced from Doctor Magic, illustrates this trend. The decline in stablecoin dominance indicates that investors anticipate Bitcoin’s appreciation against the US dollar, reflecting a growing appetite for risk and increased confidence in the market.
If this trend continues, as liquidity flows back into Bitcoin and drives its price higher, it could serve as confirmation that Bitcoin’s parabolic phase has begun.
Please note that this article does not provide investment advice or recommendations. Every investment and trading decision involves risk, and readers should conduct their own research before making any decisions.
Bitcoins parabolic phase on the verge of starting with 250K target indicated by these 3 signs