empty
07.02.2024 09:24 PM
Bitcoin is on the verge of parabolic growth

Renowned crypto analyst Peter Brandt, assessing the current dynamics of the leading cryptocurrency, stated that Bitcoin is on the verge of parabolic growth. His bullish statement, based on the Elliott Wave Theory, claims that recent BTC charts seem to mimic a pattern indicating potential parabolic acceleration in the price growth of Bitcoin. Brandt notes that Bitcoin is in the final phase of the downturn and is about to start a new upward cycle.

The expert points out that the price of BTC demonstrates a continuous upward trend along the support line of the parabolic formation. In this formation, Bitcoin follows a four-stage cycle: crash, bump, bump, and decline. Accordingly, BTC has already experienced the "dump" phase and is at the beginning of a new cycle.

Although this indicates the start of a new bull market after the cryptocurrency's downturn phase, Brandt notes that BTC is in a new growth phase. He stressed that such cyclical regularities have repeated in the past and is repeating again.

As a result, if Bitcoin maintains the support line of the parabolic ascent formation and surpasses resistance levels, the parabolic growth predicted by the analyst for Bitcoin will occur. However, if BTC fails to hold the support level, the expected growth may be postponed.

This image is no longer relevant

What's happening on the macro level: Reflecting on the events of the past year

Stepping away from the local technical picture, let's look at events happening on the macroeconomic front. In the first quarter of last year, a significant event occurred that affected cryptocurrency markets. We witnessed the collapse of regional banks that did not properly adjust their risks as the Federal Reserve quickly raised interest rates. It seemed that the situation was resolved at that time thanks to the Fed injecting more liquidity into the markets and selling troubled banks.

Numerous banks, including Signature Bank—which focused on cryptocurrencies—went bankrupt. One of these banks, whose shares fell by almost 60% in 2024, raised the question of whether similar events could happen again.

As the first anniversary of the initial shocks approaches, shares of New York Community Bancorp (NYCB) lost 30% of their value in just five days.

What's happening in 2024

A year later, the bank's shares continue to cause concern. Some experts believe this signals a period reminiscent of events from the previous year. Benjamin Cohen noted the bank's market value falling to 1997 levels, indicating that investors remain unprotected.

In March 2023, Bitcoin experienced sudden fluctuations as regional banks began to collapse, and the Bank Term Funding Program (BTFP) of the Federal Reserve helped alleviate the burden of troubled banks. However, the program was halted, and now banks have to act independently.

Former CEO of BitMEX, Arthur Hayes, had previously emphasized the risk of volatility associated with this situation. Hayes suggests that BTC could see an impressive recovery after falling to $30,000 if a similar scenario unfolds.

The losses of NYCB led to another downgrade by the rating agency Moody's. The Chinese CSI 1000 index also suffered losses of trillions of dollars in the last quarter and fell by 8% on February 5th when it was announced that there would be no bailout.

All of this indicates that, while macro-level fluctuations continue, the price of Bitcoin may also experience significant volatility. We might be in the early stages, but there is a possibility that these discussions will become a reality in the coming months.

Ekaterina Kiseleva,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Crypto investors still overwhelmed by optimism

Despite the ongoing correction, investor sentiment toward buying crypto assets remains positive, as indicated by the so-called Fear & Greed Index, which, as we noted earlier, is still

Jurij Tolin 16:24 2025-05-30 UTC+2

Do you know the most profitable company in the crypto industry?

While Bitcoin and Ethereum saw a fairly solid correction toward the end of the week, the most profitable company in the crypto industry — Tether — may have been quietly

Jakub Novak 16:16 2025-05-30 UTC+2

Trading Recommendations for the Cryptocurrency Market on May 30

Bitcoin and Ethereum continued their corrections, falling significantly throughout yesterday. The decline extended into today's Asian session, with Bitcoin updating its price to $104,500 and Ethereum testing $2,560. Thus

Miroslaw Bawulski 09:29 2025-05-30 UTC+2

Trading tips on crypto market for May 29 (North American session)

Bitcoin has shown a fairly solid rebound, climbing back above the $108,000 mark and breaking through $109,000. The chart below highlights a morning breakout through the $108,100 level. Statistics confirm

Miroslaw Bawulski 15:46 2025-05-29 UTC+2

Bitcoin recovers to $109,000

Bitcoin quickly rebounded to the $109,000 mark today. This rapid surge, especially following yesterday's dip to around $106,600, once again highlights the strong interest from large players who take advantage

Jakub Novak 15:04 2025-05-29 UTC+2

Bitcoin demand shows no signs of fading

Bitcoin demand has shown resilience once again. After a brief dip below the $107,000 mark, the decline was swiftly bought up, demonstrating that buyers remain active and confident

Jakub Novak 13:38 2025-05-29 UTC+2

Trading Recommendations for the Cryptocurrency Market on May 29

Bitcoin is starting a correction, and Ethereum is showing signs of strength. Yesterday, Bitcoin dipped to around $107,000 before rebounding sharply — a sign that many traders are cautious about

Miroslaw Bawulski 08:56 2025-05-29 UTC+2

Bitcoin Emerges from Wall Street's Shadow: Why the Coming Months Could Be Pivotal for the Crypto Market

The announcement that Cantor Fitzgerald, one of the largest U.S. primary dealers, is launching Bitcoin-backed lending has reshaped the crypto market. Managing $2 billion in capital for this venture

Ekaterina Kiseleva 00:31 2025-05-29 UTC+2

Trading Recommendations for the Cryptocurrency Market on May 28

Bitcoin failed to hold above the $110,000 level, while Ethereum again showed decent growth, fueled by news of a possible significant increase in the gas limit per block

Miroslaw Bawulski 10:04 2025-05-28 UTC+2

Bitcoin Remains Within a Range Conducive to Growth

Yesterday, Bitcoin and Ethereum continued to attract demand from traders and investors, maintaining strong prospects for the continuation of the bullish market. Meanwhile, the International Monetary Fund (IMF) stated that

Jakub Novak 09:36 2025-05-28 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.