- Bitcoin (BTC) appears to be gearing up for its third parabolic rally in this market cycle, according to a noted cryptocurrency strategist.
- The analyst draws parallels to Bitcoin’s price action in 2017, where the cryptocurrency experienced three distinct parabolic phases before the bull market culminated.
- “Back in 2017, we saw multiple parabolic trends that eventually led to a massive vertical run,” the analyst shared in a recent YouTube video. “We might be setting up for something similar in 2024.”
Will Bitcoin replicate its past performance in 2024? Stay ahead of the trends with our latest insights.
Bitcoin Boasts Renewed Bullish Momentum
According to recent technical analyses, Bitcoin’s current price movements mirror those of the 2017 market, suggesting potential for a significant upward trajectory. Strategists, like Kevin Svenson, emphasize that the current optimism and restored momentum might drive BTC into its third parabolic phase.
Technicals Indicate Favorable Conditions for BTC
Svenson highlights that technical indicators are beginning to align favorably for Bitcoin. He points out that the Relative Strength Index (RSI) level is at a similar support point as it was during the initial stages of the second parabolic phase earlier this year.
“At the start of 2023, BTC’s weekly RSI found support around 45, corresponding with the beginning of its initial parabolic breakout,” Svenson explains. “We might be entering another expansion zone right now.”
Momentum Indicators Signal Potential Upsurge
The Moving Average Convergence Divergence (MACD) indicator also supports the bullish outlook. Svenson notes that the weekly MACD shows a reduction in bearish momentum and an increase in bullish momentum. Historically, such conditions have often preceded significant price rallies.
Market Sentiment and Outlook
The overall market sentiment appears to be shifting positively as well. Renewed investor optimism and increasing trading volumes are crucial factors that could propel Bitcoin to new heights. Analysts recommend keeping an eye on key resistance and support levels, as breaking these could affirm the onset of a parabolic trend.
Conclusion
In summary, technical indicators and market sentiment are currently in Bitcoin’s favor. If these conditions persist, Bitcoin might be on the verge of replicating its historical parabolic run from 2017. Investors should stay vigilant and monitor these developing trends to capitalize on potential opportunities in the coming months.
