Bitcoin Price Prediction: Will BTC Start a New Bull Run Targeting a Fresh All-Time High (ATH)?

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).

The Federal Reserve’s recent rate cut has instilled optimism in the financial markets, particularly evident in Bitcoin’s latest price rally. As BTC surges in response, traders are speculating whether this could begin a run towards a new all-time high (ATH).

With financial conditions easing up, Bitcoin’s upward trajectory has sparked discussions about whether the current price momentum can lead the digital asset to surpass its previous records.

Here are some key bullish cues that could propel Bitcoin towards a new all-time high (ATH) as highlighted by several crucial on-chain metrics.

From a futures market perspective, open interest (OI) is rising, indicating growing participation in the market. More traders are opening positions, increasing the likelihood of a significant price move. Rising OI and a positive OI-weighted funding rate suggest that long positions currently dominate the market.

While the funding rate is positive, its declining trend may indicate that bullish momentum is softening. However, it still shows that buyers are paying a premium to shorts, indicating confidence in higher prices.

Furthermore, the active address momentum shows an encouraging uptick in the short-term 30-day moving average, indicating 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 indicate 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 have historically 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.

Meanwhile, the BTC/USD pair has formed a technical setup called the ‘bull flag pattern,’ which adds to the 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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