Bitcoin has simply closed six consecutive month-to-month inexperienced candles for the primary time since April 2013. Ought to historical past repeat, Bitcoin could get pleasure from additional parabolic features this 12 months.
In April 2013, Bitcoin closed at roughly $140 after posting six inexperienced month-to-month candles. Whereas the markets would retrace to lower than $100 over the subsequent two months, Bitcoin would then surge 700% over the next six months and tag costs above $1,000 for the primary time.
Bitcoin posted an analogous sample within the lead as much as its parabolic bull run in 2017, with the markets posting 5 consecutive inexperienced month-to-month candles heading into September. Whereas September noticed BTC publish range-bound consolidation, Bitcoin surged into new all-time highs in October to rallied from $5,000 to virtually $20,000 by the top of the 12 months.
In line with Bloomberg strategist, Mike McGlone, Bitcoin may very well be buying and selling for greater than $400,000 by 2022, ought to the markets comply with the tendencies beforehand witnessed throughout 2013 and 2017. McGlone lately claimed that Bitcoin is “nicely on its method to changing into a world digital reserve asset.”
Veteran dealer and market analyst, Peter Brandt, can be bullish on Bitcoin, predicting BTC may acquire an additional 250% to interrupt above $200,000. “I believe we’re in that midpoint pause the place in 2017 Bitcoin swirled round for a month or two earlier than we noticed the ultimate transfer up,” he stated.
Nonetheless, previous tendencies don’t assure future efficiency and the historical past of inexperienced candles is somewhat murky. Regardless of Bitcoin posting 5 inexperienced month-to-month candles in a row throughout late 2015, the early weeks of 2016 noticed BTC crash by 20% earlier than producing a number of months of tightening consolidation.
Equally, the 5 consecutive months of bullish momentum that kicked of 2019 was adopted by a protracted downtrend, with BTC having fallen greater than 60% from its 2019 highs amid the “Black Thursday” crash of March 2020. Bitcoin didn’t reclaim its 2019 price-highs till December 2020.