Bitcoin (BTC/USD) is setting the stage for a breakout after a period of tight consolidation, according to market analysts.
The asset has been trading in a narrow band between $93,000 and $95,000 since April 25, building up pressure that could soon translate into a decisive move.
FxPro analyst Alex Kuptsikevich told CoinDesk that Bitcoin’s prolonged consolidation phase is usually a bullish signal, adding that the market is now awaiting a global catalyst, which Friday’s U.S. non-farm payroll and unemployment figures might provide.
“Markets are in a tight range, and declines have been shallow. A strong labor report could serve as a global signal to drive risk assets higher, possibly leading crypto toward a $3.5 trillion market cap,” Kuptsikevich said.
Negative funding rates also signal potential upside, said Pat Zhang, head of research at WOO X. He added that Bitcoin’s funding rates have remained negative for the past week, a rare occurrence that often indicates large investor accumulation and an upcoming rally.
“Negative funding usually reflects bearish sentiment, but when paired with strong support zones, it flips bullish. Whale activity both on and off exchanges is increasing, and that tends to precede major price moves,” Zhang explained.
According to Zhang, Bitcoin’s funding rate has fallen into negative territory only four times in the past two years. Each instance – in September and October of 2023, and twice in mid-to-late 2024 – was followed by upward momentum in the market.
Analysts agree that Bitcoin’s sideways trading is setting the stage for a bullish breakout, which could be sparked by macroeconomic data or renewed investor interest.
With the current market setup favoring further upside, and momentum visibly building, Friday could witness the long-awaited catalyst for Bitcoin’s next leg up.
