Bitcoin price is pushing hard to maintain above $24,000, after a sustained rally to pre-FTX fallout levels.
Along the way, each bounce in price action has begun to take on a parabolic shape, which could keep the top cryptocurrencies climbing much higher.
All About Parabolic Price Rallies
Bitcoin became a household name after a parabolic rally to $20,000 back in 2017. The top cryptocurrency has yet to have as dramatic of an uptrend since then, and instead opted for smaller parabola-driven surges.
Upward curving support trend lines are a characteristic of a parabolic rally, highlighted by dip-buying behavior that drives prices higher and higher. Pullbacks are quickly bought up and only when price moves far away from the curve does a correction back to it occur.
There is no denying this has been the behavior in the market in recent days, which has possibly begun to build yet another a parabolic base.
Is Bitcoin Building Another Base?
The parabola in early 2023 best matches the technical environment of 2019. In each scenario, Bitcoin put in a local bottom and was on a mission to prove it was the de facto bear market bottom.
Not only is price action following a similar structure of parabolic base building, but several technical indicators and even candlesticks match the setup from 2019. In the chart above, the LMACD shows momentum at roughly the same turning point and a similar-looking price fractal.
Turn on the Bollinger Bands instead, and expansion and contraction of the BBs look shocking the same. Upon closer inspection, the highlighted red box in the chart above also depict matching candlestick structures with a hammer and a long-legged doji.
What came after these signals was another massive push upward and a confirmation the bear market was over. BTCUSD daily charts is possibly once again building a parabolic curve, and indicators are exhibiting similar readings — Will the top cryptocurrency top higher from here and stay ahead of the curve?
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