Analyst Predicts Bitcoin is on the Verge of Entering Parabolic Stage of Market Cycle
An analyst who has been gaining popularity for his accurate macro crypto calls believes that Bitcoin (BTC) is on the cusp of entering the parabolic stage of its market cycle.
Known as TechDev, the pseudonymous analyst has a substantial following on the social media platform X, where he shared his insights with over 490,300 followers. According to TechDev, Bitcoin is displaying technical signals that have historically preceded significant price rallies.
One of the key indicators highlighted by TechDev is Bitcoin breaching the upper range of its Bollinger Bands in the two-month timeframe. This occurrence comes after nearly two years of recovery from a bear market bottom. Traders often use Bollinger Bands to identify periods of potential volatility expansion and determine whether an asset is overbought or oversold.
Furthermore, TechDev’s analysis includes a chart that shows similarities between the current market cycle and the 2016 and 2020 cycles. In both instances, Bitcoin exhibited similar signals before embarking on parabolic surges.
Additionally, TechDev points out that Bitcoin is in the early stages of a parabolic ascent based on the cryptocurrency’s logarithmic moving average convergence divergence (LMACD) indicator. This indicator is designed to detect changes in an asset’s trend, strength, and momentum.
By analyzing Bitcoin from a high timeframe perspective, TechDev asserts that the current cycle has not reached its peak yet. Despite reaching milestones such as $30,000, $50,000, $70,000, and $90,000, the high timeframe expansion has not concluded. TechDev predicts that Bitcoin will continue its upward trajectory until the LMACD on the two-month chart hits its resistance at 0.12, with the current LMACD hovering around 0.04.
As of the time of writing, Bitcoin is trading at $97,274.
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