Bitcoin’s past logarithmic movement has historically followed a reoccurring pattern in three distinct phases. If the same pattern persists, large exponential gains could be in the cards for the end of the year and into 2019.
Those on the outside looking in have probably seen all the recent mainstream news headlines about Bitcoin — and how it has ‘finally crashed’ and how ‘the bubble has popped.’
However, can you really call it a bubble, if the bubble keeps coming back stronger than it was before?
Can the Past Predict the Future?
One popular cryptocurrency analyst and enthusiast going by the moniker ParabolicTrav published a chart earlier this year showing the logarithmic curve of the price of Bitcoin since its inception in 2010.
The author highlights 3 distinct phases of movement throughout the years — a pattern that has completed twice already and seems to be on track for a third.
The first phase highlighted in yellow shows a period of months where the price goes slightly above the midline of the curve, before returning back to the median.
The second phase in blue has historically shown the largest percentage gains in Bitcoin’s history.
No Pain, No Gain
In 2011, the price of Bitcoin shot from just under one dollar to over $32 in the span of two months, marking the first point on the top of the curve. The red phase consists of a sharp decline and stagnation before the 2011 pattern took Bitcoin from its then all-time high back down to two dollars at the bottom of the curve.
The 3-phase pattern appeared again between 2013 and 2014 when the price rose slightly past the midline of the curve around $150 before returning to $100 and subsequently rocketing off to a new all-time high of $1,150.
During the two years that followed, the price of Bitcoin slowly bled and shrunk back down to under $200 where it sunk to the bottom of the curve — not making it back to the $1,000 level until early 2017.
During the spring and summer of 2017, Bitcoin saw new all-time highs and crept exceedingly quicker back to the middle of the curve — reaching a new high of nearly $20,000. However, just as it had in the two previous cycles, the price has now taken us back to the center of the channel between $6,000 and $7,000.
Next Stop: New All-Time High?
If the logarithmic trend continues, Bitcoin could see an exponentially higher all-time high within the next year.
It goes without saying that no person has a crystal ball that can tell us with one-hundred percent accuracy what will happen to the price in years — or even months — from now. That being said, patterns in the market do exist and they can help us to better plan and strategize, whatever the outcome may be.
Do you think Bitcoin will continue on its logarithmic trend? When will Bitcoin return to its $20,000 all-time high? Let us know your thoughts in the comments below!