Room to Run: Bitcoin (BTC) Hasn’t Printed Parabolic “Correction” Signal

Bitcoin (BTC) has undoubtedly been trading in a parabolic pattern since bottoming in December at $3,150. The past few months have seen the cryptocurrency market absolutely explode, posting new highs every other week. Until now anyway.

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As of the time of writing this, BTC has found itself changing hands for $11,300 — down around 20% from its year-to-date high of $13,850. The asset has failed to put in a new year-to-date high in about three weeks, marking the end of a nearly seven-month-long parabolic swing to the upside.

With this, some are wary that a large correction could ensue, one that could bring Bitcoin back to $7,000 or even pre-rally levels in the $4,000s and $5,000s.

You see, when parabolas correct in financial markets, they correct hard. In Bitcoin’s case, this is especially relevant, as it exists as an early-stage asset that is hyper-volatile and reflexive.

As Peter Brandt, a legendary commodities trader, recently pointed out, a violation of the parabola could send BTC falling back to Earth. In fact, he quipped in a tweet that the cryptocurrency could lose 80% of its year-to-date high