The article explores the potential for Bitcoin to enter a parabolic bull run after a prolonged period of consolidation. Historically, October and Q4 have been bullish for Bitcoin, especially in halving years like 2020 and 2016. This period is often marked by significant gains, as seen in Bitcoin's monthly returns, where October plays a crucial role in driving upward momentum.
Additionally, economic indicators are aligning in favor of a potential explosive move. Data shows that 86% of the time, the S&P 500 posts positive returns 12 months after the first rate cut, which is expected soon. While the total crypto market cap is down 33%, this is an improvement compared to the last cycle when it was down 50%, signaling stronger performance this time around. The consolidation phase before Bitcoin’s next halving is a rare event and could be the precursor to a major bullish cycle.
Despite not yet entering an overbought phase, Bitcoin appears to be in the early stages of its next bull run. Major resistance levels like the 20-day and 50-day moving averages need to be broken for confirmation. Furthermore, BlackRock, a $9 trillion asset management firm, views Bitcoin as a hedge against global uncertainty, which could attract more investment and push the total crypto market cap to $4.5 trillion, with potential growth to $12.5 trillion in the coming cycle.
In conclusion, while short-term resistance remains, indicators suggest a 15-20% power move for Bitcoin could be imminent. Now is a critical time for the market, as a breakout could lead to significant upside in the near future.
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