Author: Yashu Gola, CoinTelegraph; Translated by: Bai Shui, Jinse Finance
So far in 2024, the price of BTC has risen by 55%, with a 12.50% increase in October. Better-than-expected Wall Street earnings have improved overall risk sentiment, driving the recent rise in the stock.
BTC/USD daily price chart. Source: TradingView
Additionally, investors are increasingly considering the possibility of a Federal Reserve rate cut in November, and the rising likelihood of Donald Trump, a supporter of cryptocurrencies, winning the 2024 presidential election has further bolstered optimism.
Fundamentally, Bitcoin appears to be in a favorable position to enter a bull market cycle for the remainder of 2024 and beyond. Meanwhile, certain technical and on-chain indicators also show similar upward prospects.
Bitcoin price to reach $100,000 by 2025
The first sign of Bitcoin entering a new bull market cycle comes from its two-month logarithmic chart, shared by independent market analyst Coosh Alemzadeh on X.
This chart marks Bitcoin's historical bullish phases, such as a 60-fold increase around 2011, a 20-fold increase in 2017, and a 6-fold increase during the 2020-2021 bull market.
These phases follow a pattern: Bitcoin's price first consolidates, then experiences a significant, almost vertical rise.
BTC/USD two-month price chart. Source: Coosh Alemzadeh
As of October 2024, Bitcoin shows signs of breaking out of its long-term consolidation phase, which typically marks the beginning of a bull market within the parabolic channel indicated by two red dashed lines.
Market analyst Ted Pillows echoed this view, emphasizing a similar breakout from Bitcoin's consolidation channel.
Bitcoin/USD weekly price chart. Source: Ted Pillows
He believes that Bitcoin's "parabolic phase" has begun, consistent with historical patterns of rapid price acceleration.
Alemzadeh's analysis predicts that Bitcoin will rise above $100,000 by 2025, with a long-term target of $250,000.
Bitcoin whale data shows rebound trend
Another bullish signal for Bitcoin comes from on-chain data tracking whale activity on spot exchanges.
The "exchange whale ratio," represented by a 30-day moving average, currently reflects a pattern last observed after the 2020 crash. In this case, whales actively accumulated Bitcoin, leading to a massive bull market that pushed Bitcoin to historical highs by the end of 2021.
Bitcoin trading whale ratio. Source: CryptoQuant
As of October 2024, a similar whale accumulation pattern indicates that large holders are preparing for a potential price increase, as noted by CryptoQuant analyst Woominkyu:
"They (whales) may benefit from the potential long-term price increase following the next Bitcoin halving."
Dominance of stablecoins is declining
The third indicator focuses on the dominance of stablecoins. Market analyst Doctor Magic pointed out that the dominance of stablecoins like USDT, USDC, and DAI has been steadily declining since mid-2024.
Historically, when capital begins to flow out of stablecoins, it is a precursor to significant price increases in top cryptocurrencies, including Bitcoin, as shown below.
Stablecoin market cap (black) compared to BTC/USD (green) weekly chart. Source: Doctor Magic
In other words, the decline in stablecoin dominance indicates that investors expect Bitcoin's value to appreciate relative to the dollar. A stronger dollar reflects an increasing market risk appetite and confidence.
If this trend continues, it could strongly suggest that as more liquidity flows back into Bitcoin, driving its price higher, Bitcoin's parabolic phase has indeed begun.
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