Bitcoin Follows ‘Perfect Script’ to $150K+ Highs This Cycle – Analyst
Bitcoin (BTC) prices are consolidating below their 2021 all-time high of $69,000, and independent trader Bob Lucas believes the price is entering an “explosive” period of its four-year cycle.
“Bitcoin will close the 2nd year of its 4-year cycle next month, enter the 3rd year of the cycle and a historic breakout year,” said Lucas on October 8 at X.
Lucas uses a four-year cycle to identify tops and bottoms in the Bitcoin market. Historical analogies can help investors identify when the market is rising in the current cycle.
Lucas sees Bitcoin stuck in a widening bearish wedge following the fall from the March 14 all-time high of $73,835. He predicts that Bitcoin may soon enter a parabolic growth spurt.
“An 8-month base has been built, sentiment has reset and prices are easing. I mean the script is perfect.
BTC/USD Monthly Chart. Source: Bob Lucas
Lucas' analysis comes against a backdrop of general market uncertainty and fear, with continued geopolitical tensions, the upcoming US presidential election and doubts about the health of the US economy.
With the above in mind, bulls may need to produce a monthly candle above the upper trend line of the broader wedge pattern and hold an eight-month base in October to ensure they enter the third year of the cycle.
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Against this backdrop of optimism, analysts at blockchain analytics firm Sentiment observed significant investor interest in Bitcoin in Q4.
“Analysts and members of the community continue to be optimistic about Uptober and the potential for a bull run in 2024. Institutional interest in Bitcoin is also growing, especially in anticipation of more space ETFs.”
Recent sentiment for Bitcoin. Source: Santiment
If speculative buying continues, the resulting FOMO could lead to significant growth, as predicted by Lucas.
Additionally, with institutional interest increasing and net inflows returning to US-based Bitcoin ETFs, Bitcoin is likely to continue its four-year cycle following the positive Q4 narrative.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
