Bitcoin (BTC) is struggling with a significant resistance level below $45,000 despite recent gains related to speculation regarding US spot exchange-traded fund (ETF) approval.
This comes as overall market sentiment suggests that Bitcoin is poised for a potential rally towards all-time highs.
In line with this, an analysis by crypto trading specialist Tradingshot published on TradingView on December 29 suggests that a parabolic rally could be imminent if Bitcoin successfully surpasses the key resistance level of $48,500.
Tradingshot noted that Bitcoin has seen significant mid-cycle growth over the past two months, approaching the $50,000 level. The expert emphasized that a break above the $48,500 resistance level could mark the beginning of the parabolic phase of the bullish cycle.
“Bitcoin (BTCUSD) has shown significant mid-cycle growth over the last 2 months, approaching the important 50,000 level. “Technically, a break above the 48.5k resistance marks the beginning of the Parabolic Phase of the Bull Cycle,” he said.
To visually represent this transition, our analysis used the Pitchfan tool to depict a cycle that highlights the current phase of Bitcoin market movement. According to experts, historical patterns show that resistance breaks in the Bitcoin market often coincide with halvings. This is a fundamental event that signals the beginning of a rally to new all-time highs.
With just four months until the halving, experts say the decline in the 1D MA50 (50-day moving average) presents a buying opportunity for investors using dollar cost averaging (DCA) strategies.
