Bitcoin has shown renewed strength on the weekly time frame by resuming a steady uptrend that began earlier this year. After several weeks of fluctuating between $110,000 and $120,000, Bitcoin is now experiencing intense momentum supported by institutional demand, leading to a new all-time high in the past 24 hours.
Interestingly, the technical analysis of Bitcoin’s weekly price chart shows that the cryptocurrency is getting ready for a boom to $200,000. This projection is based on Bitcoin’s ongoing price behavior exact replica of Gold’s rally during the seventies.
Bitcoin Joins the Gold Rally of the 1970s
An interesting technical analysis shared by Mikybull Crypto on the social media platform His latest post on Now it appears that Bitcoin is now reflecting the same macro setup and could be targeting a price explosion to $200,000 or higher.
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In one of the charts shared by Mikybull, gold’s price action from the mid-1970s to 1980 is overlapped 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) heralded this run, and Mikybull predicted that Bitcoin is now entering a similar phase, as shown by the blue ellipse in the chart below.
Mikybull’s equation also integrated the legendary Livermore Speculative Chart, an early 20th century framework, to track Bitcoin’s behavior. Bitcoin’s price action on the weekly time frame follows a structure labeled one through ten, with each level corresponding to phases in the Livermore Speculative Chart.
Why Bitcoin could explode to $200,000 could be just 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 phase of Livermore’s speculative cycle. Current market trends indicate that Bitcoin is making progress past the eighth stage at the 1.618 Fib level ($145,355) before continuing into the ninth phase of the cycle, which is just above the 2.618 Fibonacci extension level at $204,000.
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This will be followed by the tenth phase, around the expansion from 3,618 to $262,000, which is expected to be the final peak of this cycle, based on the Livermore speculative cycle. At the time of writing, Bitcoin is trading at $121,450, after withdrawing a little afterwards the most recent all-time high at $126,080 on October 6.
Featured image from Adobe Stock, chart from Tradingview.com