Analyst Asserts That Bitcoin Is Still in the Early Phase of Its Parabolic Run

Analyst Asserts That Bitcoin Is Still in the Early Phase of Its Parabolic Run

Bitcoin (BTC) continues to create massive boosts for the entire cryptocurrency industry over the past few weeks and is showing no signs of a slowdown. At press time, the benchmark cryptocurrency is trading above the $35k level after a 7% rally earlier today. This is a massive rally considering that it’s a rebound from a fall to the $30k support just yesterday.

BTC clocked a new all-time high at $35,897 before retreating to the lower-$34k area. However, the cryptocurrency appears to be in the process of retesting that ATH. Speculators foresee a $40k price tag for BTC in the near-term.

Meanwhile, one analyst has asserted—via a tweet—that Bitcoin’s rally is yet to enter “overheated conditions,” noting that historical patterns indicate that the current parabolic run is still at its early phases. He notes that “this rally is warm but not yet overheated. This is how much ‘speculative premium’ we have right now compared to similar phases of the prior 2 bull markets.”

That said, this historical precedence, combined with the fact that institutional investments are still flooding into Bitcoin, paints a bright picture for the potential boom awaiting the cryptocurrency.

BTCUSD – Hourly Chart

Key BTC Levels to Watch — January 6

Despite a 6% drop from its recent ATH at $35,897 to the mid-$33k area, Bitcoin continues to wax stronger as it prepares to retake the recent ATH. Our hourly MACD indicates that the cryptocurrency might go into a modest consolidation or another correction to ease the tension a bit.

Meanwhile, our key resistance levels are at $35,897, $36,000, and $36,300. While our key support levels are at $34,000, $33,300 and $32,500.

Total Market Capitalization: $977 billion

Bitcoin Market Capitalization: $661 billion

Bitcoin Dominance: 67.6%

Note: Learn2.Trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.