Bitcoin’s exponential growth lead 40-year trading veteran Peter Brandt to (famously) believe BTC entered a new “parabolic phase.” From its December low of $3,150 BTC could aim for a new high of $100,000, Brandt suggested. However, in the short-term, the technicals do not look so rosey.
The “parabolic advance” has been so significant that most of the technical bearish signs seen on different timeframes have been invalidated allowing the uptrend to continue, even getting the former notoriously stubborn bear, JP Morgan Chase VP Tone Vays, to become officially bullish.
Despite the outgrowing positive sentiment that can be perceived in the market and the short-lived pullbacks, there are still some patterns hinting that Bitcoin could be due for more major corrections.
Bitcoin technical analysis
In the long-term, everything seems to point out that the bull market has started and Bitcoin is on its way to new all-time highs, as Peter Brandt explained.
The moving average convergence divergence (MACD) that, which is commonly used to follow the path of a trend and calculate its momentum, recently had a bullish cross between the 12-month exponential moving average and the 26-month exponential moving average, which is a strong positive signal.
Such a formation has only occurred twice on the 1-month chart since Bitcoin was released. The first time happened around June 2010, which took BTC through a 22.6x upswing from $5 to $214, and the second one developed in December 2015 and saw it surge 5.6x percent from $350 to $19,770.
The Parabolic SAR, which is displayed as a series of dots that helps identify potential reversals in the price movement of an asset to determine the direction of the trend,