Author: Yashu Gola, CoinTelegraph; Translated by: Baishui, Golden Finance
BTC’s price has risen 55% so far in 2024, including a 12.50% gain in October. Better-than-expected Wall Street earnings have led to an overall improvement in risk sentiment, driving the stock’s recent gains.
BTC/USD daily price chart. Source: TradingView
Additionally, investors are increasingly considering the possibility of a November rate cut by the Federal Reserve, and the rising likelihood that crypto-friendly Donald Trump will win the 2024 presidential election has further boosted optimism.
Fundamentally, Bitcoin appears well-positioned to enter a bull cycle through the remainder of 2024 and beyond. Meanwhile, certain technical and on-chain indicators suggest a similar upside outlook.
Bitcoin price to reach $100,000 by 2025
The first sign that Bitcoin is entering a new bull cycle comes from its two-month logarithmic chart, which independent market analyst Coosh Alemzadeh shared on X.
The chart marks Bitcoin’s historical bullish phases, such as a 60x increase since around 2011, a 20x increase in 2017, and a 6x increase during the 2020-2021 bull run.
These phases follow a pattern where the price of Bitcoin first consolidates and then undergoes a large, almost vertical rise.
BTC/USD two-month price chart. Source: Kush Alemzadeh
As of October 2024, Bitcoin is showing signs of breaking out of its long-term consolidation phase, which typically marks the beginning of a bull run within the parabolic channel marked by the two red dashed lines.
Market analyst Ted Pillows echoed this sentiment, highlighting 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 to over $100,000 by 2025 and to $250,000 in the long term.
Bitcoin whale data shows a rebound trend
Another bullish signal for Bitcoin comes from its on-chain data tracking whale activity on spot exchanges.
The “Exchange Whale Ratio,” represented by the 30-day moving average, currently reflects a pattern last observed after the 2020 crash. In this case, whales actively accumulated Bitcoin, followed by a massive bull run that pushed Bitcoin to a new all-time high in late 2021.
Bitcoin trading whale ratio. Source: CryptoQuant
Similar whale accumulation patterns as of October 2024 suggest that large holders are preparing for a potential price rally, CryptoQuant analyst Woominkyu noted:
“They (whales) may benefit from a potential long-term price increase after the next Bitcoin halving.”
Stablecoin dominance is declining
The third indicator focuses on the dominance of stablecoins. Market analyst Doctor Magic pointed 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 is a precursor to significant price increases in top cryptocurrencies, including Bitcoin, as shown below.
Stablecoin market capitalization (black) vs. BTC/USD (green) weekly chart. Source: Doctor Magic
In other words, the decline in stablecoin dominance suggests that investors expect Bitcoin’s value to appreciate relative to the U.S. dollar, reflecting growing risk appetite and confidence in the market.
If this trend continues, it could be strong evidence that Bitcoin’s parabolic phase has begun as more liquidity flows back into the cryptocurrency, pushing its price higher.
