Bitcoin (BTC) is consolidating below its 2021 all-time high of $69,000, and independent trader Bob Loukas believes the price is entering an “explosive” period of its four-year cycle. Loukas noted that Bitcoin has closed out its second year in a four-year cycle and is entering its third, historically explosive year.

Loukas uses a four-year cycle to identify tops and bottoms in the Bitcoin market. Historical similarities can help traders determine when the market will peak in the current cycle.

Loukas sees Bitcoin accumulating within an expanding wedge following its decline from its all-time high of $73,835 reached on March 14. He predicts that it could enter a parabolic uptrend supported by investor interest and falling interest rates.

Loukas’ analysis stands out in light of general market uncertainty and fear, ongoing geopolitical tensions, the upcoming US presidential election, and doubts about the health of the US economy. The bulls may need to confirm the entry into the third year of the cycle by producing a monthly candlestick close above the upper trendline of the expanding wedge pattern.

Analysts at blockchain analytics firm Santiment have observed increased investor interest in Bitcoin in the fourth quarter. They remain optimistic about “Uptober” and a potential bull run in 2024. They also note that institutional interest has increased in anticipation of spot ETFs.

If speculative buying continues, FOMO could lead to a significant bounce, as Loukas predicted. With increased institutional demand and a return of net inflows into U.S.-based spot Bitcoin ETFs, Bitcoin is likely to follow its positive fourth-quarter narrative and continue its four-year cycle.

This article does not contain investment advice or recommendations.Every investment and trading move involves risk and readers should do their own research when making decisions. Share your comments!