According to U.Today, Bitcoin's history of volatile moves following periods of consolidation could suggest another price spike is on the horizon. Historical data shows that Bitcoin has experienced a quarterly close pivot after every consolidation phase. This pattern is evident in the quarterly price movement of Bitcoin since 2010, where significant price fluctuations typically occur after periods of consolidation.
In early 2013, Bitcoin saw a substantial increase in value, going from approximately $16 to $739 within a few quarters. Similar patterns of consolidation followed by a price spike were observed in 2015 and 2017, with Bitcoin's value rising from around $230 to nearly $20,000 by the end of 2017. More recently, Bitcoin stabilized around the $10,000 mark in late 2020 before soaring to over $60,000 in early 2021. Currently, Bitcoin is trading at $58,000, and if past patterns are any indication, another price spike could be imminent.
A closer look at Bitcoin's daily price fluctuations over the past few months reveals that the cryptocurrency found support at the 200 exponential moving averages (EMAs), suggesting a potential bottom formation. Bitcoin is now trading above the 100 EMA, and the recent rebound from this level indicates a bullish outlook. The daily chart also shows a decrease in volume during the downtrend and an increase as the price began to rise, a pattern often indicative of the start of a new upward trend and the end of a bearish phase.
Considering the past quarterly fluctuations and current daily activity, it appears that Bitcoin could be gearing up for another significant move.