Analyst: Bitcoin Parabolic Trend Is “Close To A Breakdown”

Tony "The Bull" Severino

1 year ago

3 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Created by industry experts and meticulously reviewed

The highest standards in reporting and publishing

How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Bitcoin price has been in a strong uptrend since Black Thursday that turned fully parabolic in Q4, resulting in a new all-time high. But according to an analyst, the first-ever cryptocurrency is close to a breakdown of a parabolic curve that’s been supporting the upwards momentum for months.

Is this the end of the uptrend? Or is this just another touch of the parabolic support before blasting off to another level higher?

Bitcoin Goes Parabolic In 2020, What’s To Come In The New Year?

Bitcoin price is $1,000 below its 2020 peak, but clinging onto support ahead of the arrival of the new year. The leading cryptocurrency by market cap is the standout investment of the year, bringing positive portfolio performance amidst the backdrop of economic uncertainty and a dying dollar.

The perfect storm for the cryptocurrency was combined with institutions suddenly realizing the asset’s potential as a store of value and hedge against inflation.

The surge of FOMO from high-wealth buyers has propelled Bitcoin to where it currently is, causing support to take on a parabolic shape.

Each correction was bought with such fury over the last few months, the price action has nearly gone straight upwards, which could result in the parabolic curve breaking down for the first time according to one crypto analyst.

Bitcoin's parabolic curve could be ready to break down | Source: BTCUSD on TradingView.com

Correction Incoming, Or Does Crypto Volatility Go Vertical?

Bitcoin’s uptrend began either in December 2019 or on Black Thursday, depending on how you look at it. The black swan event was an anomaly, and the crypto asset kept climbing directly thereafter.

If anything, it caused the greatest buying opportunity in the asset’s history, resulting in a 500% ROI in just one year.

But the parabolic curve breaking down, could lead to a temporarily bearish phase – or it just as easily could cause the asset to keep on climbing higher in an upward trajectory.

Past parabolic curves for comparison's sake | Source: BTCUSD on TradingView.com

Past instances of parabolic curves show both conclusions. In 2016, the parabolic curve kept going, while in 2019 it broke down resulting in several more months of a bear market.

Another parabolic shape could be losing support now, but which scenario will it come next? Considering how strong the uptrend has been with very little correction, a short-term trend change is possible and doesn’t mean the long-term uptrend is a lost cause if prices drop from here.

Just like Black Thursday, shakeouts attract new investors, allowing price to increase in a healthy way. When assets climb too quickly, selloffs get equally as nasty.

For now, continue to watch how price action takes shape, pun intended.

Featured image from Deposit Photos, Charts from TradingView.com

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.