Before the end of 2018 the Bitcoin trend of parabolic gains could reach the top-ranked cryptocurrency set a new all-time high (ATH) if not in 2018 then in early 2019 at top. BTC is currently soaring between $6,000 and $7,000 with its highest third quarter value of $8,400 set in early July 2018.
Exponential Growth of Bitcoin Price
Most of the BTC critics are indicate unpredictability. Bitcoin bashers do not take a softer line in pointing out that the cryptocurrency occurrences sharp price deteriorations. While such proclamations are accurate, yet they miss the far bigger picture of how BTC performs within time.
BTC has experienced many massive price declines during its lifecycle. Nevertheless, Bitcoin has always ended each decrease at a price level considerably higher than its value at the onset of the heralding price rally.
Bitcoin Cash (BCH)
Bitcoin Gold (BTG)
Bitcoin displays reliable parabolic gains which means that it is a logarithmic property. Consequently, viewing the linear chart below, BTC seems to be in sharp deterioration since its mid-December 2018 ATH.
In spite of this, on the next chart below it is obvious that value of BTC has steadily risen on a yearly period. Even after a price collision, BTC care for a healthy discrepancy when compared to its price before the initiation of the rally.
A Little Bit of History
Clem Chambers of ADVFN likened Bitcoin’s logarithmic advance to that of Warren Buffett’s investment selection earlier in this year. According to Chambers, the BTC price progresses by 26 percent every stage. In consequence, Chambers projected that Bitcoin could go from $20,000 into the dominions of Draper and McAfee who have calculated BTC prices ranging from $250k to $1 million.
Going by past, during BTC’s first bubble stage, it augmented before suffering a 90 percent to settle at $2 from $0.95 to $32. A similar trend also occurred In 2013. BTC progressed from $100 to $1,200 before a noteworthy pullback carried the price to float between $200 and $300.
BTC began the year under $1,000 and soared to nearly $20,000 last year. After a 60 percent pullback, it has endured fairly firm in the mid-$6,000 region.
Analogy of the Bacteria
Social scientist, Prateek Goorha compared Bitcoin’s price movement to the growth phase of a bacteria in a Medium post titled: The Parabolic Supertrend in Bitcoin — An assessment. As said by Goorha, every Bitcoin price rally has arisen over a period characterized by three phases.
The first phase – “stasis,” sees the market coming to grasps with the status quo determined from the previous falloff. The stage is categorized by sidelong growth and a progression of short squeezes followed by mini drops.
BTC has practiced four other mini price drops. Interspaced between these falls have been periods of abrupt but short-lived price fruitions (short squeezes) since the formation of the $6,000 price bottom in February 2018.
The second phase – “exponential growth,” sees BTC increasing abruptly to set a new ATH. The market seems to be replicating with the bulls firmly in control like the behaviour of bacteria. Last period, the bull run corresponded with the initiation of BTC futures trading.
The final phase – “decline,” sees BTC experiencing a gigantic pullback, typically above 70 percent. In spite of this, the top-ranked cryptocurrency manages to bottom out higher than it was at the beginning of the previous rally for all time.
BTC should be set for another eye-catching price run, maybe even into the six-digit sphere if this bacteria approach is correct.