Leading cryptocurrency Bitcoin (BTC) has experienced a rapid recovery in recent weeks after months of sharp decline.
While BTC rose above $95,000, the total cryptocurrency market value approached $3 trillion. At this point, while Bitcoin is consolidating between $93,000 and $95,000, analysts think that BTC is preparing for an explosive rise. Analysts generally predict that prolonged consolidation and negative funding rates could lead to a strong bullish move in Bitcoin, while macroeconomic factors could also influence market sentiment.
Friday’s Data is Important!
Speaking to Coindesk, FxPro analyst Alex Kuptsikevich said that prolonged consolidations are good for Bitcoin and set the stage for an upward breakout. Stating that Friday’s non-farm payrolls and unemployment data are very important for the rise, the analyst said that a global catalyst is needed for the rise: “Such long consolidations typically build strength for further upside. The next big trigger is likely to be Friday’s labor market data. Also, over the last five days, the market has been trading in a very tight range and has shown a tendency towards shallower declines. “For a boom, global positivity is needed. If that happens, it will pave the way for a rally to $3.5 trillion.”
Bullish Signals Are Increasing For Bitcoin!
WOO X research head Pat Zhang also made similar predictions, saying that consolidation is preparation for Bitcoin’s rise. Zhang also stated that funding rates in BTC have been negative for the last week, and that this situation is rare and is interpreted as a bullish signal. “BTC continues to experience volatility, forming a consolidation range between $93,000 and $95,000 since April 25, and is gaining momentum for a potential breakout. “Furthermore, the average funding rate for BTC has been negative over the past week, a rare occurrence and indicative of intense whale activity and a potential rally both on and off exchanges.” Noting that in the last two years, funding rates for Bitcoin have only been negative four times, the analyst said that these were “September 19 – September 22, 2023, October 20 – October 27, 2023, August 16 – August 24, 2024, and September 10 – September 17, 2024” and that this rate should be followed. “Following these periods of negative funding rates, BTC has experienced strong bullish trends. This, supported by whale accumulation, suggests that BTC may be preparing for a potential bullish move.”
*This is not investment advice.
