This Metric Suggests BTC Could See Sharp Uptick Within the Next 2 Months
Bitcoin (BTC) currently ranges between $94,000 and $96,000, but on-chain signals suggest the cryptocurrency is on the verge of a massive breakout. Data from blockchain analytics platform CryptoQuant indicates that BTC could witness a sharp and significant uptick within the next one to two months.
According to a report by pseudonymous digital asset analyst Crypto Dan, a signal usually seen once or twice in each bull market has just appeared. It indicates that BTC could skyrocket soon as it approaches the final phase of this cycle.
BTC Could Skyrocket in 2 Months
The signal called the golden cross of the Spent Output Profit Ratio (SOPR) indicator entails the SOPR 365-day moving average crossing the SOPR 30-day moving average. Only in bull seasons have these indicators crossed, and the market has experienced a strong rally within the following two months each time.
Crypto Dan said the signal occurs once or twice throughout an entire bull cycle, and it is the second in this upward phase that kicked off in January 2023.
Notably, the upcoming rally is likely to be the largest in the final phase of this cycle. The crypto analyst mentioned that the magnitude of these runs often increases as the market advances toward the later stages of the bull cycle, while declines and corrections are smaller and happen over a shorter time frame.
If this signals indications are to come true between the end of 2024 and the first quarter of 2025, Crypto Dan expects the market to witness new capital inflows and the creation of additional crypto funds. This rise in demand and liquidity will help bring the market to its peak.
BTC Slips Below $95K
Meanwhile, analysts are speculating on bitcoins short-term price trajectory based on current demand and supply. Long-term investors have been rapidly offloading their holdings to realize profits, while short-term BTC holders have been accumulating; however, it appears demand is no match for supply.
Market experts have identified $90,000 and $95,000 as key support levels for BTC, stating that the asset has a higher chance of rallying to $100,000 if it remains above the latter. On the other hand, BTC could tumble all the way to the $80,000 region if it slips below $90,000.
At the time of writing, BTC had fallen slightly intraday to $94,800. While the asset holds steady, it remains to be seen how long it will take to break out, as Crypto Dans analysis has predicted.
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Text source: CryptoPotato
