The appearance of a golden cross in the SOPR indicator suggests that Bitcoin could surge to new highs in the next two months.
Bitcoin (BTC) is currently between 94,000 USD and 96,000 USD, but on-chain signals indicate that the cryptocurrency is on the verge of a major breakout. Data from blockchain analysis platform CryptoQuant suggests that BTC could experience a sharp and significant increase in the next one to two months.
According to a report by anonymous digital asset analyst Crypto Dan, the signal that typically appears once or twice during each bull market has just emerged. This indicates that BTC may soon surge as it approaches the final stage of this cycle.
BTC could surge in 2 months
The signal known as the Spent Output Margin Ratio (SOPR) golden cross means the SOPR 365-day moving average crosses above the SOPR 30-day moving average. These indicators are only crossed during bull market seasons, and the market has experienced a strong rebound each time in the following two months.
Crypto Dan states that this signal appears once or twice throughout the entire bull market cycle, marking the second occurrence in the upward phase that began in January 2023.
It is worth noting that the upcoming rebound could be the largest rebound in the final stage of this cycle. The cryptocurrency analyst mentioned that as the market enters the late stage of the bull market cycle, these upward movements typically increase in magnitude, while declines and corrections are smaller and occur over shorter timeframes.
If the signs of this signal materialize 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 more crypto funds. Increased demand and liquidity will help push the market to its peak.
BTC breaks below 95,000 USD
Meanwhile, analysts are speculating on Bitcoin's short-term price trajectory based on current demand and supply. Long-term investors have been quickly selling their holdings to realize profits, while short-term BTC holders have been accumulating; however, demand seems unable to match supply.
Market experts have identified 90,000 USD and 95,000 USD as key support levels for BTC, stating that if the asset remains above the latter, it is more likely to rebound to 100,000 USD. On the other hand, if BTC breaks below 80,000 USD, it could fall all the way to the 90,000 USD range.
At the time of writing, BTC has slightly dipped to 94,800 USD. While the asset remains stable, as predicted by Crypto Dan's analysis, how long it will take to break through remains to be seen.
