The co-founders of crypto analytics firm Glassnode think Bitcoin (BTC) could be poised for a parabolic rise if the leading digital asset repeats a certain pattern.
Glassnode co-founders Jan Happel and Yann Allemann, who share the Negentropic handle on the social media platform seek attention to the quote “History does not repeat itself, but often rhymes,” often attributed to Mark Twain.
According to Happel and Allemann, Bitcoin appears poised to replicate a pattern seen during the last two bull markets, while BTC creates a bull flag on the weekly chart.
“BTC has moved to the 6.618 Fibonacci extension after a bullflag correction. Currently we are in a small correction, like at the end of 2017 and the end of 2020.
Will history rhyme in 2024 – and will BTC go to its 6.618 Fib extension in this bull market? That would give us a target amount of ~$120,000. Time will tell!”
Traders use Fibonacci extensions in technical analysis to estimate profit targets and price declines. They are based on Fibonacci ratios.
Bitcoin is trading at $40,021 at the time of writing. The highest-ranked crypto asset by market capitalization is down about 3% in the past 24 hours.
Also the co-founders of Glassnode seem bullish on shares.
“Trend following is a strong investment strategy! Ask yourself, “Why am I bearish on stocks in the current technical environment?” Nasdaq just surpassed previous all-time highs. It is above the three-month SMA [simple moving average] and the SMA of 12 months. And [its] Three-month SMA is higher [its] SMA of 12 months.
RSI (Relative Strength Index) is at 66 (= strong momentum). MACD (moving average convergence divergence) is bullish and rising. From a trend following perspective…. Why would I expect a crash here?”
The RSI measures an asset’s price momentum on a scale of 0 to 100. A level of 30 and below indicates oversold conditions, while a level of 70 and above indicates overbought conditions.
Meanwhile, the MACD is traditionally used to detect trend reversals and confirm trends.
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Generated image: Midjourney