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Bitcoin’s price surge in the fourth quarter of 2024 could be a blockbuster event, according to historical price data. Despite a recent pullback, the cryptocurrency’s year-to-date performance remains strong, fueled by positive fundamental factors like the launch of spot Bitcoin ETFs and the halving event.
While Bitcoin’s price has yet to surpass its pre-halving all-time high, historical analysis indicates a strong possibility of a parabolic rally in Q4. The cryptocurrency has consistently posted positive returns during halving years, with gains of 58% and 168% in 2016 and 2020, respectively.
Veteran trader Peter Brandt has suggested that the current market cycle could be the longest in post-halving history, potentially indicating a delayed new all-time high or even a less optimistic outlook. However, the historical data points towards a Q4 rally.
CryptoQuant founder Ki Young Ju has analyzed Bitcoin’s price action during the 2020 halving and found that the bull rally began in Q4. He believes that Bitcoin is currently in an accumulation phase, suggesting that a parabolic uptrend could be imminent.
While the 200-day EMA poses resistance to Bitcoin’s price, the cryptocurrency has formed a series of higher lows on the daily chart. The In/Out of the Money Around Price (IOMAP) model reveals that Bitcoin faces relatively stiff resistance in its recovery path.
If Bitcoin can break through the 200-day EMA and subsequent resistance levels, it could initiate a significant uptrend. However, failure to do so could lead to a price drop towards $57,500 or lower.
As the fourth quarter of 2024 approaches, investors and analysts are closely watching Bitcoin’s price action for signs of a potential parabolic rally. Whether the cryptocurrency can break through its current resistance levels and deliver a blockbuster performance remains to be seen.
Also Read: Bitcoin ETFs Break Records – $17.5B In Inflows In 2024
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Crypto and blockchain enthusiast.
