Bitcoin Ready For A Parabolic Rally?
While Bitcoin is far from a full-on bull run, analysts have already tried to call the next BTC top, if there is one that is. And as normal, these traders have been crazy bullish. Trace Mayer, a long-time Bitcoiner, recently remarked that per his indicator, the Mayer Multiplier, which ways current prices and the 200-day moving average, we may have just entered “crypto spring.” In fact, the Mayer Multiplier recently surmounted 1.0, and is moving in a way that resembles that seen in 2015’s Bitcoin recovery. And if previous market cycles rhyme, BTC could see $100,000 or even $250,000 by 2021.
Mayer isn’t the only one to have issued such predictions. Inmortal Technique, an analyst, recently showed charts that accentuated that Bitcoin’s current price action resembles that seen prior to the bullish turnaround in the previous cycle (2014-2016). Thus, if history rhymes, BTC could see a retest of its lows before a long-term rally that brings the asset to $200,000 to $300,000 region.
And interestingly, the stage might actually be getting set for such a rally. The Guppy indicator, which uses an array of moving averages to gauge potential trends (both bullish and bearish), recently flipped green for the first time since early-2018. Save for the chance that this is a bull trap, which has purportedly only occurred twice in Bitcoin’s all-time daily chart, the bearish trend is officially over.
Bears Not Done Yet — Heads Up
While all the aforementioned analysts seem to be thoroughly enthused, some have reminded traders to keep their heads down, as emotion can often lead to irrational trading decisions, crypto especially. Industry commentator Bitcoin Macro remarked on Twitter that “the bear market isn’t over yet,” adding that traders shouldn’t take heed of optimists saying that Bitcoin is home free.
Macro even quips that BTC could “easily” see new lows, even if the cryptocurrency manages to break $6,000 — a level that some see as a make or break point for Bitcoin.
He isn’t the first to have made this call. Murad Mahmudov, the chief investment officer of Adaptive Capital, is another one to have claimed that bears might not be done with their bloodshed just yet. Mahmudov recently took to the stage of Token2049 to claim that more likely than not, considering the state of the industry and historical precedent, Bitcoin will likely see a drop to somewhere in the $2,000s, presumably the lows, before an eventual recovery to a confirmed bull market.
Title Image Courtesy of Kent Pilcher Via Unsplash
