This metric suggests that BTC could see a sharp rise in the next 2 months

Bitcoin (BTC) is currently hovering between $94,000 and $96,000, but on-chain signals suggest that the cryptocurrency is on the verge of a massive breakout. Data from blockchain analytics platform CryptoQuant indicates that BTC could witness a sharp and significant rise in the next month or two.

According to a report by digital asset analyst pseudonymous Crypto Dan, a signal that is usually seen once or twice in every bull market has just appeared. It indicates that BTC could skyrocket soon as it approaches the final phase of this cycle.

BTC could skyrocket in 2 months

The signal called the golden cross of the Spent Output Profit Ratio (SOPR) indicator implies that the 365-day SOPR moving average crosses the 30-day SOPR moving average. Only during bull seasons have these indicators crossed, and the market has seen a strong rally in the following two months each time.

Crypto Dan said that the signal occurs once or twice throughout an entire bull cycle, and it is the second of this upward phase that began in January 2023.

In particular, the next concentration is likely to be the largest in the final phase of this cycle. The crypto analyst mentioned that the magnitude of these runs often increase as the market moves into the later stages of the bull cycle, while dips and corrections are smaller and occur in a shorter time frame. .

If the indications of this signal come true 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 additional crypto funds. This increase in demand and liquidity will help drive the market to its peak.

BTC drops below $95,000

Meanwhile, analysts speculate on bitcoin’s short-term price trajectory based on current supply and demand. Long-term investors have been quickly offloading their holdings to take profits, while short-term BTC holders have been piling in; however, it appears that demand does not equal supply.

Market experts have identified $90,000 and $95,000 as key support levels for BTC, stating that the asset has a better chance of rallying to $100,000 if it holds above the latter. On the other hand, BTC could fall to the $80,000 region if it breaks below $90,000.

At the time of writing, BTC had fallen slightly on the day to $94,800. While the asset remains stable, it remains to be seen how long it will take to break out, as predicted by Crypto Dan’s analysis.

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