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This Simple Observation Suggests Bitcoin is About to Go Parabolic

Avatar Nick Chong 3 months ago

Ever since Bitcoin (BTC) started declining last July, falling as low as $6,400 by the middle of December, analysts have been wondering when bulls are going to step in and push cryptocurrencies higher once again.

According to a simple observation of Bitcoin’s historical market cycles, the next parabolic rally could start soon. Very soon.

Related Reading: Why Analysts Think Bitcoin Price On Verge of Crash to $6,000

Bitcoin Halving to Boost Prices Pre-Event, Historical Data Suggests

Cryptocurrency analyst Nunya Bizniz recently made an eerily bullish observation about Bitcoin.

He noted that in the two previous market cycles of the BTC market, the cryptocurrency performed extremely well starting 120 days (four months) out from the cycles’ respective block reward reductions, known as “halvings” or “halvenings.”

In the four months prior to the first halving in 2012, the price of BTC rallied dozens of percent higher from $10 to around $14 by the time of the event; and in the four months prior to the second halving in 2016, the price of Bitcoin went effectively parabolic, running from $432 to $700.

This simple historical analysis, which is backed up by the fact that investors attempt to “front-run” the halving by buying Bitcoin beforehand, suggests that the crypto market may soon explode higher ahead of the halving, potentially entering into a parabolic uptrend.

Related Reading: A Big Plunge to Sub-$100 for Ethereum Is Imminent If This Happens

Analysts Agree

The technicals purportedly corroborate the historical trend of Bitcoin rallying strongly ahead of the block reward reduction.

Per previous reports from this very outlet, Financial Survivalism, a pseudonymous analyst that last week called Bitcoin’s surge into the $8,000s when the asset was trading in the high-$6,000s, recently said that he thinks BTC can trade at $20,000 by July 1st, 2020, just a month or two after the halving.

While this may sound lofty, he went on to rationalize the prediction, drawing attention to an array of technical signals implying that bulls are about to assert a large amount of control over the market:

  1. The Lucid Stop and Reversal has printed a bullish candle for the first time since July 2019, when BTC was trading well above $10,000.
  2. The Average Directional Index on a daily basis has seen the first bullish crossover since March 2019.
  3. The one-week Relative Strength Index for Bitcoin is “getting ready to test 50,” a level that if broken through may imply dramatic upside.
  4. The one-day Ichimoku Cloud has formed a bullish TK cross.
Related Reading: Elon Musk Just Dropped the Bitcoin Bomb On Twitter, Again
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Nick Chong

Since 2013, Nick has shown interest in Bitcoin and cryptocurrencies. He has since become involved in the industry as a full-time content creator, working for NewsBTC, Bitcoinist, LongHash, among other outlets. Aside from covering...

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