TL;DR
- Bitcoin has shown a significant signal, breaking above the 2021 cycle high resistance of just below $70,000, indicating the start of its parabolic phase.
- Analyst Rekt Capital highlights that similar patterns in previous cycles led to several months of upward movement, suggesting Bitcoin could see gains well into 2025.
- Bitcoin is currently trading at $96,800, reflecting strong market sentiment and investor confidence, but investors should remain cautious and conduct thorough research.
Bitcoin has recently shown a significant signal that could mark the beginning of its parabolic phase, according to a well-known crypto analyst. This development has sparked excitement among investors and traders, who are now closely watching the market for potential steep rallies.
Breaking the Resistance
The analyst, known pseudonymously as Rekt Capital, highlighted that Bitcoin’s recent move above the resistance zone formed around the 2021 cycle high of just below $70,000 is a crucial indicator.
This breakout is seen as the “very first signal” of the parabolic phase kicking off. Historically, breaking past old all-time-high resistance levels has been a precursor to significant price increases in Bitcoin’s market cycles.
Historical Precedent
Rekt Capital pointed out that similar patterns have been observed in previous cycles. In the 2017 cycle, the analogous level was around $1,200, and in the 2020/2021 cycle, it was approximately $19,000 to $20,000.
In each case, breaking these resistance levels led to a series of monthly candles indicating a parabolic phase. The current cycle’s breakout above $69,000 suggests that Bitcoin could experience several months of upside.
Potential for Extended Gains
Based on historical data, Rekt Capital predicts that Bitcoin could see nine to twelve months of upward movement. In previous cycles, Bitcoin experienced nine months of gains in 2017 and 2020/2021.
If this pattern holds, the current cycle, which began in November 2024, could extend well into 2025. The analyst expects the parabolic phase to continue deep into 2025, followed by a bear market in 2026.
Market Outlook
As of now, Bitcoin is trading at $96,800, reflecting strong market sentiment and investor confidence. The potential for extended gains has attracted both institutional and retail investors, who are eager to capitalize on the anticipated bull run. However, investors need to remain cautious and conduct thorough research before making high-risk investments.
The recent signal indicating the start of Bitcoin’s parabolic phase has generated significant interest and optimism in the crypto market. With historical patterns suggesting several months of potential gains, investors are closely monitoring Bitcoin’s price movements.
