NOIDA (CoinChapter.com)— The Federal Reserve’s recent rate cut sparked market optimism, fueling Bitcoin’s latest price rally. With BTC surging in response, traders are now speculating whether this could begin a run towards a new all-time high (ATH).
As financial conditions loosen, Bitcoin’s upward trajectory has reignited discussions about whether the current price momentum can lead the digital asset to surpass its previous records.
Bullish Cues for Bitcoin’s Path to a New ATH
Several key on-chain metrics highlight bullish cues that could support Bitcoin’s rise toward a new all-time high (ATH).
Open interest (OI) is rising from a futures market perspective, reflecting growing market participation. More traders are opening positions, increasing the likelihood of a significant price move. Rising OI and a positive OI-weighted funding rate suggest long positions dominate the market.
While the funding rate is positive, its declining trend signals bullish momentum may be softening. Overall, longs are still in control. As long as the funding rate remains positive, buyers continue to pay short, showing confidence in higher prices.
Moreover, the active address momentum shows an encouraging uptick in the short-term 30-day moving average, signaling increased blockchain activity. Higher activity levels suggest greater transactions and growing interest in the network, a potential precursor to price surges.
In addition, net exchange flows show sustained outflows of BTC from exchanges, which often indicates accumulation by long-term holders. When investors withdraw Bitcoin from exchanges, it typically implies confidence in the asset’s future performance, as they opt for cold storage rather than preparing to sell.
The supply reduction on exchanges often increases price pressure when demand remains steady.
The Net Unrealized Profit/Loss (NUPL) metric further strengthens the bullish outlook. Having exited a capitulation phase, the NUPL now reflects rising unrealized profits, which historically have been followed by sustained upward price movements.
The metric suggests growing optimism among holders, who see potential gains but choose to hold rather than take profits.
Lastly, the MVRV Z-Score continues its upward trend, climbing from undervalued levels. This score measures the market’s relative value, and when it rises from a low base, it often signals a strong buying opportunity.
A continued increase in the MVRV Z-Score could suggest that Bitcoin still has room to grow, reinforcing the possibility of a new ATH. These combined bullish signals indicate a positive outlook for Bitcoin, potentially setting the stage for a significant rally.
Bullish Setup Adds To Bullish Cues
Meanwhile, the BTC USD pair has formed a technical setup called the ‘bull flag pattern,’ which adds to bullish cues supporting speculation of a new ATH for Bitcoin prices.
A bull flag pattern forms when a crypto token’s price experiences a near-vertical rise, creating the flag pole. This pattern commonly emerges in assets that are in a strong uptrend.
Following the steep ascent, the asset undergoes a period of consolidation, creating the pattern flag. Despite the initial strong rally, the price holds steady as buying pressure persists. Typically, a breakout from this consolidation phase triggers another significant uptrend.
The pattern reaches completion when the price breaks out from the flag area, effectively resuming the prior upward trajectory. Traders project the breakout’s price target by adding the length of the flag pole to the breakout price level.
According to the rules of technical analysis, if the token confirms the bullish technical pattern, the BTC USD pair might rally over 99% to reach the pattern’s theoretical price target near $124,740
It is unlikely that the token will reach the pattern’s target price immediately after confirming it, but a breakout could help attract more buyers to the market.
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