The market rally of Bitcoin in the past month has been nothing but incredible. The virtual asset continued to breach past major key resistance in the trend charts as consolidation was also achieved higher with minor corrections over the period of time. Many analysts suggested that the current rally could be attributed to the rise in institutional interest and the introduction of Libra, Facebook’s cryptocurrency.
While Bitcoin enjoyed its current positive momentum, the market experienced high volatility. The largest cryptocurrency recently exhibited a flash hike that took its valuation from $11,000 to almost $13,800, which was followed by an immediate correction back to $11,000 within 48 hours. Experts within the community speculated the change of pattern as a parabolic phase; a pattern that has evidently occurred for the 4th time over the last decade.
The pattern was first brought to light by Josh Rager, a reputable crypto trader and investor, who listed out possible situations for the coming week.
The aforementioned chart accounted for Bitcoin closing the current week above $11,510. Depending on if the price valuation of Bitcoin by the end of the week [11:59 PM UTC on Sunday] consolidated above the $11,500 range, industry experts have speculated a possibility of BTC re-testing the recent high of $13,800 which was exhibited in the past week. However, if the prices close below the range, there exists a chance for the valuation to re-exhibit a drop to the support of 0.382 Fibonacci, which is equivalent to $9532.
Earlier this week, Peter Brandt, a reputable trader, had also spoken out about the recent trend of Bitcoin and indicated that the virtual asset had not witnessed a measurable low in the past 17 days, which indicated further parabolic rise for the asset.
However, at press time, Bitcoin was holding a trading value of $11,705 after exhibiting a minor fall of -1.30 percent in the past one hour. Moreover, the market capitalization of Bitcoin was 208.13 billion and it was indicated that the next 12 hours would be essential for the price of Bitcoin in the coming week.