Historical Patterns Point to Bitcoin Rally
A recent CNBC Market Alert analysis suggests Bitcoin could see significant gains in the coming three months. Host Carl Quintanilla and Cappthesis founder Frank Cappelleri examined Bitcoin’s price chart and identified a recurring pattern of consolidation followed by breakout movements.
What caught their attention was how Bitcoin’s price development over the past three years shows a clear uptrend. The cryptocurrency typically extends after periods of price accumulation. Cappelleri noted that we’re currently missing the full extension seen in the fourth quarter of the last two years, which could mean there’s room for growth.
I think this pattern recognition makes sense when you look at the data. Bitcoin has shown these seasonal tendencies before, though of course past performance doesn’t guarantee future results.
Gold vs Bitcoin Correlation
The analysis also compared Bitcoin’s performance against gold over the past year. They found an interesting correlation pattern where gold often moves first, with Bitcoin eventually catching up to its trend.
Gold started the year at a similar pace to Bitcoin but maintained its uptrend while Bitcoin corrected. Then around April, gold held steady while Bitcoin closed the performance gap. This same pattern repeated in August – gold resumed upward momentum to new highs while Bitcoin consolidated.
Now gold recently hit $3,900 for the first time ever, extending its gains further. But Bitcoin has started October on a positive note and seems to be closing that gap again.
Potential Trading Implications
If historical patterns hold, the analysts suggest investors might consider trading gold for Bitcoin. The reasoning is that gold may begin to consolidate while Bitcoin rallies to close their performance gap.
It’s worth noting that CNBC didn’t specify exact price targets, but other industry figures have. Michael Saylor believes Bitcoin could reach $150,000 by Christmas, while FundStrat’s Tom Lee predicts $200,000.
These predictions seem quite optimistic to me, but they do reflect the bullish sentiment in some quarters of the market. The key takeaway is that historical patterns and current market dynamics suggest potential for Bitcoin growth in Q4, though as always, cryptocurrency markets remain volatile and unpredictable.
What I find interesting is how these traditional financial media outlets are now regularly covering Bitcoin price patterns and technical analysis. It shows how mainstream cryptocurrency has become in financial discussions.
