Home > web3.0 > body text

Bitcoin (BTC) Price Forecast: 'Golden Ratio' Correlation Points to a Potential Parabolic Rally

王林
Release: 2024-08-10 21:07:12
Original
999 people have browsed it

After undergoing a period of consolidation, the price of Bitcoin (BTC) is showing signs of a recovery. On August 9, a prominent crypto trading expert

Bitcoin (BTC) Price Forecast: 'Golden Ratio' Correlation Points to a Potential Parabolic Rally

Bitcoin price analysis: BTC price showing signs of recovery from consolidation period.

Bitcoin (BTC) price has shown signs of recovery after a period of consolidation. On August 9, a prominent crypto trading expert, known as TradingShot on TradingView, shared a promising Bitcoin price forecast, utilizing the ‘Golden Ratio’ correlation. This crucial signal, derived from the relationship between Bitcoin and the Gold/Russell 2000 (GOLD/RUT) ratio, has played a significant role in predicting Bitcoin’s parabolic rallies.

According to TradingShot’s analysis, a crucial chart pattern is unfolding once again, suggesting that a substantial upward movement in Bitcoin could be just around the corner. This pattern highlights a strong correlation between Bitcoin’s price movements and the GOLD/RUT ratio, which essentially measures the relationship between Gold and the Russell 2000 Index.

Throughout history, when the GOLD/RUT ratio peaks and begins forming Lower Highs, Bitcoin tends to enter a parabolic rally. This cyclical pattern suggests that the GOLD/RUT ratio acts as a leading indicator for Bitcoin’s price trajectory, where each decline in the ratio potentially signals the start of a strong upward move in BTC.

noUiSliderAfter the 2016 halving, Bitcoin began a significant upward move that culminated in the 2017 bull market, where prices reached an all-time high of nearly $20,000. In a similar fashion, the 2020 halving was followed by an even more dramatic rally, propelling Bitcoin to its previous all-time high of approximately $68,000 in late 2021. These patterns present the potential for another major rally if the current cycle follows the established historical precedent.

Now, if we overlay Bitcoin’s price on a secondary chart and examine the latest data, the GOLD/RUT ratio may have peaked in April 2024. If the ratio now begins to form Lower Highs, as it has done in previous cycles, Bitcoin may soon enter the most aggressive phase of its bull cycle, characterized by a steep and rapid price increase.

Since Bitcoin’s parabolic rally could be imminent, a reasonable short-term target would be $80,000 to $85,000. This range is just above the previous all-time high of $73,000 and aligns with the expected steep rise during the aggressive phase of the bull cycle.

In the long term, if the parabolic rally gains significant momentum, Bitcoin could potentially reach $100,000 to $120,000 during this cycle. This target is based on the historical magnitude of Bitcoin’s price movements during previous parabolic phases, especially following halving events.

At the moment, Bitcoin is trading at $60,637, having rallied about 0.02% in the last 24 hours. If Bitcoin follows the pattern indicated by the chart, the next major price target could range from $80,000 to $120,000. However, this projection relies on the GOLD/RUT ratio continuing to form lower highs, signaling the beginning of Bitcoin’s next parabolic move.

Given the current situation, Bitcoin is expected to reclaim the $70,000 resistance level, potentially paving the way for a new all-time high. However, it’s crucial to remember that past performance is not indicative of future performance, and the cryptocurrency market is highly volatile.

Investors should remain vigilant and consider market conditions and other external factors that could influence Bitcoin’s price trajectory.

The above is the detailed content of Bitcoin (BTC) Price Forecast: 'Golden Ratio' Correlation Points to a Potential Parabolic Rally. For more information, please follow other related articles on the PHP Chinese website!

source:php.cn
Statement of this Website
The content of this article is voluntarily contributed by netizens, and the copyright belongs to the original author. This site does not assume corresponding legal responsibility. If you find any content suspected of plagiarism or infringement, please contact admin@php.cn
Popular Tutorials
More>
Latest Downloads
More>
Web Effects
Website Source Code
Website Materials
Front End Template