In what has been an ‘unusual’ September, Bitcoin (BTC) has now posted another positive weekly performance. According to data from CoinMarketCapthe first cryptocurrency rose 5.07% over the past seven days, bringing its cumulative gain this month to 11.30%. Interestingly, with Bitcoin’s halving now gone, analysts remain highly expectant of the traditional market bull run by the largest digital asset.
BTC is consolidating as it gathers momentum for a breakout
In an X post On Friday, popular analyst Crypto Rover predicted that BTC will reach $290,000 in the upcoming bull run.
Interestingly, this price projection is consistent with previous statements from analysts who set a six-figure price target for BTC following the introduction of the Bitcoin spot ETFs, representing increased institutional demand for the crypto market leader.
Notably, BTC has risen between $55,000 and $70,000 over the past seven months, representing a state of consolidation. According to Crypto Rover, after breaking out of this current sideways move, Bitcoin will likely enter the “banana zone,” i.e. the phase of excessive price growth, as seen in previous bull cycles.
The crypto analyst predicts that BTC could trade as high as $290,000 during this period, which traditionally lasts 12-18 months, representing a gain of 339.39% on the asset’s current price.
For many crypto enthusiasts, it is likely that the long-awaited breakout will occur in the quickly approaching weeks, as Bitcoin has now formed an inverse head-and-shoulders pattern, as highlighted by Crypto Rover in another message. To explain, the inverse head and shoulders pattern is a common bullish indicator of possible downtrend reversals. If the price breaks above the neckline with significant volume, it indicates a shift to bullish control.
These sentiments about a price breakout are further reinforced by the upcoming fourth quarter to have been proven the most bullish period for Bitcoin with an average gain of 88% over the past 11 years.
Bitcoin Exchange Stablecoins ratio shows a bullish signal
More positive news for the Bitcoin community is that the Bitcoin Exchange Stablecoin Ratio is currently indicating a buy signal. According to CryptoQuant analyst with username EgyHash, this metric, which measures BTC reserves (in USD) against the exchange’s combined stablecoin reserves, is currently at early 2024 lows.
EgyHash explains that a low ratio indicates that traders have greater purchasing power due to their high holdings of stablecoins, which could translate into investments in Bitcoin, resulting in a price gain. Therefore, the current low Bitcoin Exchange Ratio adds to the list of bullish signals for Bitcoin investors.
At the time of writing, the leading cryptocurrency continues to trade at $66,064 with a gain of 1.14% on the last day. Meanwhile, Bitcoin’s daily trading volume is down 12.92% and is valued at $32.01 billion.
Featured image of Cwallet, chart from Tradingview