Bitcoin to Enter Final Bull Phase? Key Indicator Hints at Major Price Movement

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Bitcoin, the world’s leading cryptocurrency, appears to be on the brink of a potential sharp rise. According to a CryptoQuant analyst, Crypto Dan, the market could experience a significant upward trend within the next two months.

This insight, shared on the CryptoQuant QuickTake platform, is based on a critical market indicator that has historically signaled major price rallies.

Bitcoin Market Outlook: Sharp Rise Incoming

In the post titled “Strong Rise in Bitcoin is Expected Within 1-2 Months”, Crypto Dan highlights the emergence of a “golden cross” in the Spent Output Profit Ratio (SOPR) indicator.

This occurrence, he notes, is a rare event that typically happens only once or twice during an entire bull market cycle. As part of the current bullish cycle that began in January 2023, its reappearance is being seen as a strong precursor to a substantial market move.

For further context, the SOPR Ratio indicator measures realized profits and losses in the Bitcoin market, offering insight into investor sentiment.

The “golden cross” identified by Crypto Dan signifies a pivotal moment in the bull cycle. Historically, this signal has been followed by strong price increases within two months of its appearance.

Crypto Dan explained that the market is likely entering the final phase of the current upward cycle, a stage characterized by steeper price gains and shorter periods of consolidation. This means that while Bitcoin’s ascent might accelerate, the opportunities for investors to accumulate at lower prices could diminish rapidly.

Furthermore, he projected that if the anticipated rise materializes by the end of 2024 or the first quarter of 2025, it could draw significant new capital into the market. The inflow of additional funds is expected to fuel Bitcoin’s momentum, potentially driving the market to its peak during this cycle.

Dan wrote:

As the market moves towards the later stages of the cycle, the magnitude of the rise tends to be larger, and the periods of decline/adjustment are shorter. If a steep rise occurs as implied by this indicator within the end of 2024 to the first quarter of 2025, it can be expected that new inflows and additional funds will enter the market, bringing it to its peak.

BTC Market Performance

Meanwhile, Bitcoin continues to maintain stability above the $95,000 price mark. At the time of writing, the asset currently trades for $96,296, down by 1% in the past day but still up by nearly 40% in the past month.

Bitcoin (BTC) price chart on TradingView

According to a renowned crypto analyst known as Ali on X, while some in the community expect a major retracement in Bitcoin’s price, BTC could do the opposite. The analyst projected BTC could surge to as high as $120,000-$150,000 before the first 30% price correction.

Featured image created with DALL-E, Chart from TradingView

* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

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