A recent analysis on CNBC’s Market Alert suggests that Bitcoin could go much higher in the next three months, providing historical context for this rally.
Host Carl Quintanilla dissected the Bitcoin chart alongside Cappthesis founder Frank Cappelleri, providing insight on what to expect from Bitcoin in the coming months. They found a recurring pattern of price consolidation and breakout in the BTC chart, suggesting that the crypto leader could go much higher this fourth quarter.
Bitcoin Price Pattern Suggests Moonshot in Q4
Quintanilla shared that the price development of Bitcoin over the past three years has exhibited a clear uptrend pattern. He highlighted that the cryptocurrency’s price has typically extended after a period of price accumulation.
According to Cappelleri, what is missing is the full extension seen in the fourth quarter of the last two years. With the next three months historically bullish for Bitcoin, Cappelleri concluded that the token could sustain its current bullish form to “much higher” prices.
Sell Gold, Buy Bitcoin?
Meanwhile, Quintanilla also shared the gold vs. Bitcoin chart over the past year, showing the correlation pattern between the duo. Cappelleri further dissected this, highlighting that gold has often been the first mover, with Bitcoin catching up with its trend.
For perspective, he showed that gold started off the year at the same pace as Bitcoin but sustained an uptrend while BTC corrected. However, around April, the precious metal held steady, while Bitcoin closed the widened performance gap.
A similar course also happened again after Bitcoin matched gold’s trend in August. The latter resumed its upward trajectory to new all-time highs, while the former consolidated its gains. Gold recently rallied past $3,900 for the first time in its history on Friday, further extending its gains.
However, Bitcoin has started October on a bullish note and has begun to close the gap. As a result, they concluded that if history repeats, investors might want to consider trading gold for Bitcoin. This is because the precious metal may begin to consolidate while BTC rallies extensively to close their significant performance gap.
It bears mentioning that while CNBC did not specify how high Bitcoin can go, other prominent industry figures have. For perspective, Michael Saylor agrees that BTC would trade at $150,000 on Christmas Day, but FundStrat’s Tom Lee predicts that the pioneering cryptocurrency will hit $200,000 then.