Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and publishing How Our News is Made Strict editorial policy that focuses on accuracy, relevance, and impartiality Ad discliamer Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio. Bitcoin has shown renewed strength on the weekly timeframe by resuming a steady uptrend that began earlier in the year. After several weeks of ranging between $110,000 and $120,000, Bitcoin is now on intense momentum supported by institutional demand,which has led to a new all-time high in the past 24 hours.
Interestingly, technical analysis of Bitcoin’s weekly price chart shows the cryptocurrency is gearing up for an explosion to $200,000.This projection is based on Bitcoin’s ongoing price behavior being an exact replica of Gold’s rallyduring the 1970s. Bitcoin Aligning With the 1970s Gold Rally
An interesting technical analysis shared by Mikybull Crypto onthe social media platform X details how Bitcoin’s price action on the 1-week and 2-week candlestick charts is following a path walked by Gold in prior decades. His latest post on X draws parallels between Bitcoin’s ongoing price behavior and Gold’s rally during the 1970s, an era that saw the precious metal surge massively. Now, it seems that Bitcoin is now mirroring that same macro setup and could be gearing toward a price explosion to $200,000 or higher. Related Reading Can The Bitcoin Price Explode To $200,000? The Gold Chart That Tells It All 5 hours ago
In one of the charts shared by Mikybull, Gold’s price action from the mid-1970s to 1980 is overlaid with Bitcoin’s multi-year trajectory. This Gold price chart shows a consolidation phase followed by a powerful breakout in the late 1970s. According to Mikybull, Bitcoin’s structure follows this trend almost perfectly.
In his analysis, he noted that Bitcoin’s price is forming higher lows above a macro ascending trendline, the same kind of structure that preceded Gold’s explosive run. Gold’s third breakout wave (Wave 5) ushered in this run, and Mikybull projected that Bitcoin is now entering a similar phase, as shown by the blue ellipse in the chart below. Source: Chart from Milkybull Crypto on X
Mikybull’s comparison also integrated the legendary Livermore Speculative Chart, which is an early 20th-century framework, to track Bitcoin’s behavior. Bitcoin’s price action on the weekly timeframe follows a structure labeled from one through ten, each level corresponding to phases in the Livermore Speculative Chart. Why Bitcoin Can Explode To $200,000 May Only Be the Beginning For Bitcoin
As shown in the chart above, Bitcoin is currently trading around the 1.272 Fibonacci extension level below $125,000 and is playing out the eighth stage of Livermore’s speculative cycle. Current market trends point to Bitcoin advancing past the eighth stageat the 1.618 Fib level ($145,355) to then advance to the ninth stage of the cycle, which is just above the 2.618 Fibonacci extension level at $204,000. Related Reading This Major Bitcoin Metric Just Made A New Low For The First Time In 6 Years, Is An ATH Above $130,000 Coming? 1 day ago
After that lies the tenth stage, around the 3.618 extension at $262,000, projected to be the final peak of this cycle based on Livermore’s speculative cycle. At the time of writing, Bitcoin is trading at $121,450, having retraced slightly afterits most recent all-time high of $126,080 on October 6. BTC trading at $122,475 on the 1D chart | Source: BTCUSDT on Tradingview.com Featured image from Adobe Stock, chart from Tradingview.com