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Bitcoin’s price may continue its parabolic advance, says renowned trader

Disclaimer: This article contains technical analysis, which is a methodology for forecasting the direction of prices through the study of past market data, primarily price and volume. The content presented in this article is the opinion of the author. None of the information you read on CryptoSlate should be taken as investment advice. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own diligence and consult with a financial advisor before making any investment decisions.

Peter Brandt, a 40-years trading veteran, is back on the bullish side claiming that Bitcoin likely resumed its fourth “parabolic advance.”

Parabolic Phases

The author of “The Diary of a Professional Commodities Trader,” explained earlier this year that Bitcoin’s market valuation can be divided into three parabolic phases, based on 1-week charts.

The first one started in July 2010, when BTC was trading around $0.05 and reached a high of $24.15 in January 2011. The second parabolic move took over two years to develop. BTC went from a low of $2 on October 2011 to a high of $1,142 on November 2013. Finally, the most recent one began in January 2015, taking BTC from $164 to $19,770 by December 2017, representing a 120x rise.

Although Brandt suggested that Bitcoin could have entered a fourth parabolic phase when it broke the $4,200 price hurdle in April, he was expecting a retracement before the continuation of the bullish trend.

Now that the coin retraced more than 34 percent from a yearly high of $13,870 to $9,070, and entered a consolidation period since June 26, it seems to be preparing for another upswing. The renowned technical analyst highlights the possibility that BTC could soon resume its uptrend and continue advancing through its fourth parabolic phase.

Bitcoin technical analysis

Brand’s perspective aligns with a descending triangle that appears to be forming on the 1-day chart. This is considered a continuation pattern that could breakout in the same direction as the trend that was in place prior to the triangle’s formation. A move above the upper descending trendline signals that bullish momentum is likely to resume or even intensify. By measuring the height from the upper and lower trendline the descending triangle forecasts a bullish target of 34.50 percent upon the breakout point.

Nonetheless, descending triangles can also form as bearish patterns showing that demand for BTC is weakening. Thus, if Bitcoin breaks to the downside instead it could try and reach $6,200.

Bitcoin US dollars price chart
BTC/USD by TradingView

Despite the opposing views that the descending triangle pattern presents, the market sentiment around Bitcoin seems bullish. Bakkt promises to take Bitcoin to institutions with physically-delivered futures and it’s less than a year to the block reward halving. Given these factors, Peter Brandt is setting his sights high with a $100,000 BTC price prediction.

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