In what was an “unusual” September, Bitcoin (BTC) has now recorded another positive weekly performance. According to data from CoinMarketCap, the cryptocurrency has risen 5.07% in the past seven days, taking its cumulative gain this month to 11.30%. Interestingly, as Bitcoin has halved since its demise, analysts are still very much expecting a bull for the traditional market held by the largest digital asset.
BTC In Consolidation As It Gathers Breakout Momentum
In an X post on Friday, the famous Crypto Rover analyst predicted that BTC will reach the $290,000 price mark in the upcoming bull run.
Interestingly, this price prediction is in line with previous statements from analysts who set six BTC prices following the launch of Bitcoin spot ETFs representing an increase in institutional demand for the crypto market leader.
Notably, BTC has been moving between $55,000 – $70,000 for the past seven months representing a consolidation situation. According to Crypto Rover, following the outbreak of the current sideways movement, Bitcoin is likely to enter the “banana zone” i.e. a phase of extreme price growth, as seen in previous bull cycles.
The crypto analyst predicts that during this period which traditionally lasts 12-18 months, BTC can trade up to $290,000 which represents a 339.39% profit on the current price of the asset.
For many crypto enthusiasts, it is likely that the long awaited breakout will happen in the fast approaching weeks as Bitcoin has now formed an inverse head and shoulders pattern as highlighted by Crypto Rover in another post. To explain, an inverse head and shoulders pattern is a typical bullish indicator of a potential downtrend reversal. If the price breaks above the neckline with significant volume, it indicates a change in bullish control.
These sentiments about the price exit are further reinforced by the upcoming Q4 which has proven to be the season for Bitcoin with an average gain of 88% over the last 11 years.
Bitcoin Exchange Stablecoins Ratio Shows Bullish Signal
In more good news for the Bitcoin community, the Bitcoin Exchange Stablecoin Ratio is currently showing a buy signal. According to CryptoQuant analyst with the username EgyHash, this metric that measures the BTC reserves (in USD) to the combined stablecoin reserves in the exchange is currently at the lowest level seen in early 2024.
EgyHash explains that the lower ratio indicates that traders have increased purchasing power due to higher stablecoin holdings which can translate into investments in Bitcoin, thus resulting in price gains. Therefore, the current low Bitcoin Exchange Ratio adds to the list of bullish signals for Bitcoin investors.
At the time of writing, the main cryptocurrency continues to trade at $66,064 with a gain of 1.14% in the last day. Meanwhile, the daily trading volume of Bitcoin decreased by 12.92% and is estimated at $32.01 billion.
Featured image from Cwallet, chart from Tradingview