After Bitcoin’s price plunged more than $500 within an hour on August 19, the market recovered some upward momentum over the weekend.
A prominent analyst who correctly predicted the uptrend that began in the first half of 2019 now suggests that the cryptocurrency could be in the early stages of its next parabolic rally — a move that could push BTC well beyond the previous all-time high of $20,000 set in December 2017. Peter Brandt stated that Bitcoin may be on the verge of entering its fourth parabolic phase.
At the time of writing, the Bitcoin price has gained roughly 2 percent over the last 24 hours and trades around $9,780, a solid recovery from the day’s low near $9,500. The next major target for BTC bulls is likely $10,000 — a level that has shown strong support so far.
This price rise followed a post from popular crypto analyst Raoul Pal, who told his more than 100,000 followers on Twitter that he believes Bitcoin is close to the bottom of a large wedge pattern, which could precede a significant upward move in the near term:
If you don’t have any bitcoin $BTC #bitcoin then this looks like the last time to board the rocket ship… I LOVE wedge patterns like this. They have a high probability of success.
If you don’t have any bitcoin $BTC #bitcoin then this looks like the last time to board the rocket ship…
I LOVE wedge patterns like this. They have a high probability of success.
Good luck. There is a “shit ton” going on in macro land. pic.twitter.com/tmNzxkcgTQ
— Raoul Pal (@RaoulGMI) September 1, 2019
Raoul Pal is not alone in promoting a bullish outlook. Peter Brandt, who called the 2019 rise shortly before it began, responded to Pal’s tweet by suggesting that BTC may be entering its fourth parabolic phase. “Possibility that $BTC has entered fourth parabolic phase,” Brandt noted, and he shared a chart illustrating his point.
Possibility that $BTC has entered fourth parabolic phase https://t.co/q4nAgkVJff pic.twitter.com/PL2LQ4ANOY
— Peter Brandt (@PeterLBrandt) September 1, 2019
Although it is still early to definitively say whether Bitcoin has entered a new parabolic run, it is important to recognize that BTC must decisively break above $10,000 in the coming days and weeks to confirm a clear uptrend.
Crypto Insider: Bitcoin Fixes Central Bank Problems
In a recent blog post for Unchained Capital, a financial services firm that provides liquidity to crypto holders, Parker Lewis argues that Bitcoin has the potential to significantly affect monetary policy — particularly the expansive policies pursued by central banks.
To maintain currency stability, expansionary monetary policy allows central banks to purchase government bonds, mortgage-backed securities and other financial assets from member banks and institutions. Central banks effectively create loans “out of thin air,” which banks then use to buy securities, increasing the money supply.
While many economists point to benefits from buying long-term government debt, critics argue these policies can weaken the foundations of a healthy economy by creating market distortions, driving inflation, fueling populism, and widening wealth gaps.
Lewis writes:
There remains a prevailing economic view that active monetary control by a central bank is essential. The opposing perspective — that such active control harms the economy — cannot practically coexist within the same central banking framework, which creates a monoculture and limits alternative approaches.
Over the 20th century the economic debate evolved into the mainstream position we see today. The result is a system heavily dependent on currency debasement and credit expansion, both of which are achieved through quantitative easing.
Since Bitcoin’s emergence, this question is no longer purely academic. Instead, we now have two competing monetary systems with stark differences: one seeks stability through active money supply management, while the other accepts temporary volatility to maintain a fixed supply.
Over the last decade, adoption within the established system has dominated, reflected by the introduction and rising value of fiat assets relative to other currencies. Choosing Bitcoin represents a withdrawal from quantitative easing. Although that path can be volatile, the long-term trend should persist as central banks continue to pursue policy tools that Bitcoin fundamentally resists.
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