Bitcoin price action has been known to go “parabolic” when speculation in the crypto market is in full gear. Prices begin to rise rapidly with very few pullbacks in between.
According to evidence, a parabolic structure is possibly building that could cause BTCUSD to “double” in a short amount of time. And with the first ever digital asset now above $30K per coin, it means a potential monstrous move to $60K could be on the horizon.
Why BTC Could Teleport To $60K
In technical analysis, an asset is said to have gone “parabolic” when an increasingly steep upward curve supports a series of higher highs and higher lows.
Parabola typically forms in a sideways, horizontal range. After each higher low, price accelerates further, causing the angle of the slope to nearly go vertical.
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Bitcoin has done this several times throughout its short history. And after the longest bear market on record, the cryptocurrency could be ready for another parabolic rally.
Has Bitcoin built another parabolic base? | BTCUSD on TradingView.com
Bases Loaded, Bitcoin Number Up
A comparison with the iconic parabolic curve example, possibly puts Bitcoin price at what would be the third touch and third base of a four-base pattern. A rounded parabolic curve is supporting a series of high timeframe higher lows.
Base three is significant because it is said to produce a move where the asset “doubles in the shortest period of time.” With Bitcoin near $30K, $60K could be right around the corner if this is an accurate patter.
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Above base three is base four, meaning there is yet another zone of consolidation somewhere above that will touch down on the curved parabolic trend line a final time. From there, the next time it touches the curved line will be after a peak of the parabolic rally.
A glimpse into the future? | BTCUSD on TradingView.com
Will Crypto Parabola Begin Again?
Don’t believe this structure is possible in Bitcoin? Simply take a look at past cycles for an example. In the above chart, Bitcoin formed several bases in a row. After touching the X, price didn’t just “double,” it did 1,700% ROI. Even then, BTCUSD wasn’t done climbing, rallying another 700% from base four.
These figures aren’t probable again, but it speaks to the fact that something big very well could be coming soon.
Tony is the author of the CoinChartist (VIP) newsletter. Sign up for free. Follow @TonyTheBullBTC & @coinchartist_io on Twitter. Or join the TonyTradesBTC Telegram for daily market insights and technical analysis education. Please note: Content is educational and should not be considered investment advice. Featured image from Shutterstock, Charts from TradingView.com
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