Ever since Bitcoin (BTC) started declining last July, falling as low as $6,400 by the middle of December, analysts have been wondering when bulls are going to step in and push cryptocurrencies higher once again.
According to a simple observation of Bitcoin’s historical market cycles, the next parabolic rally could start soon. Very soon.
He noted that in the two previous market cycles of the BTC market, the cryptocurrency performed extremely well starting 120 days (four months) out from the cycles’ respective block reward reductions, known as “halvings” or “halvenings.”
In the four months prior to the first halving in 2012, the price of BTC rallied dozens of percent higher from $10 to around $14 by the time of the event; and in the four months prior to the second halving in 2016, the price of Bitcoin went effectively parabolic, running from $432 to $700.
This simple historical analysis, which is backed up by the fact that investors attempt to “front-run” the halving by buying Bitcoin beforehand, suggests that the crypto market may soon explode higher ahead of the halving, potentially entering into a parabolic uptrend.
While this may sound lofty, he went on to rationalize the prediction, drawing attention to an array of technical signals implying that bulls are about to assert a large amount of control over the market:
Related Reading: Why Analysts Think Bitcoin Price On Verge of Crash to $6,000
Bitcoin Halving to Boost Prices Pre-Event, Historical Data Suggests
Cryptocurrency analyst Nunya Bizniz recently about Bitcoin.Bitcoin is about 120 days away from the halving. What was price action like 120 days prior to the first two halvings? Whether you believe its priced in or not, if past is prologue – volatility may be expected. — Nunya Bizniz (@Pladizow)
Related Reading: A Big Plunge to Sub-$100 for Ethereum Is Imminent If This Happens
Analysts Agree
The technicals purportedly corroborate the historical trend of Bitcoin rallying strongly ahead of the block reward reduction.Per previous reports from this very outlet, , a pseudonymous analyst that last week called Bitcoin’s surge into the $8,000s when the asset was trading in the high-$6,000s, recently said that he thinks BTC can trade at $20,000 by July 1st, 2020, just a month or two after the halving.
- The Lucid Stop and Reversal has printed a bullish candle for the first time since July 2019, when BTC was trading well above $10,000.
- The Average Directional Index on a daily basis has seen the first bullish crossover since March 2019.
- The one-week Relative Strength Index for Bitcoin is “getting ready to test 50,” a level that if broken through may imply dramatic upside.
- The one-day Ichimoku Cloud has formed a bullish TK cross.
Related Reading: Elon Musk Just Dropped the Bitcoin Bomb On Twitter, Again
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