Bitcoin’s price tends to surge dramatically, going “parabolic,” when the crypto market is abuzz with speculation. During such times, prices soar rapidly with minimal pullbacks.
Recent evidence suggests that a parabolic trend might be taking shape, possibly propelling BTCUSD to double in value in a short span. With the original digital asset now priced above $30,000 per coin, a potential substantial jump to $60,000 seems plausible.
This parabolic pattern in technical analysis involves a steep upward curve supporting a series of increasingly higher highs and higher lows. Parabolas usually form within a horizontal range, and as each higher low emerges, prices accelerate, leading to an almost vertical slope.
Bitcoin has displayed this behavior multiple times in its relatively brief history. Following the prolonged bear market, the cryptocurrency could be gearing up for another parabolic rally.
Drawing a comparison with the iconic parabolic curve, Bitcoin’s price appears to be at the third touch and third base of a four-base pattern. A rounded parabolic curve underpinning a series of higher lows over a significant time frame.
Base three is particularly noteworthy as it is believed to trigger a scenario where the asset doubles in value within a remarkably short period. If this pattern holds true, Bitcoin, currently around $30,000, might be on the verge of reaching $60,000.
Beyond base three lies base four, indicating the existence of another consolidation zone higher up that will intersect with the curved parabolic trend line one last time. After this, the next interaction with the curved line will occur after a peak in the parabolic rally.
If you doubt the possibility of this structure materializing in Bitcoin, just look at past cycles for reference. In the chart provided, Bitcoin formed several consecutive bases. After touching the X, the price didn’t merely double; it achieved a 1,700% return on investment. Even then, BTCUSD continued to rally, adding another 700% from base four.
While it’s unlikely to see those exact figures repeated, this history highlights the potential for significant developments on the horizon.