Bitcoin (BTC) Set for 400% Surge? History Says Yes

Bitcoin has a history of exhibiting extreme volatility after undergoing periods of consolidation. Historical trends show that there has been a significant price movement following each consolidation phase.

A review of Bitcoin’s quarterly price movements since 2010 reveals that notable fluctuations typically follow these consolidation periods. For instance, after a time of relative stability, Bitcoin surged from approximately $16 to $739 at the beginning of 2013 within just a few quarters.

Similar patterns emerged in 2015 and 2017, where Bitcoin consolidated around $230 before skyrocketing to nearly $20,000 by the end of 2017. More recently, Bitcoin stabilized around the $10,000 level in late 2020 before it soared past $60,000 in early 2021. Presently, Bitcoin is trading at around $58,000, and given its recent consolidation, there are indications that another price spike may be on the horizon.

Focusing on the past few months, a closer examination of Bitcoin’s daily price fluctuations shows the exponential moving averages (EMAs) of 50, 100, and 200 days. Recently, Bitcoin found support at the 200 EMA, which suggests that a potential bottom is forming.

With Bitcoin currently trading above the 100 EMA, the rebound from this level indicates a bullish sentiment. The daily chart reveals that trading volume decreased during the downtrend but increased as the price began to rise, a pattern that often signals the onset of a new upward trend and the end of a bearish phase. Based on the historical quarterly fluctuations and current daily movements, it appears that Bitcoin may be poised for another significant shift.