Bitcoin Following “Perfect Script” to Hit $150k Cycle High

Article by Nancy Lubale

Bitcoin’s price is consolidating below its 2021 high of $69,000, and independent trader Bob Loukas says it is entering an “explosive” period of a four-year cycle. 

“Bitcoin closes the 2nd year of its 4-year cycle next month, entering the 3rd and historically explosive year of the Cycle,” Loukas said in an Oct. 8 post on X. 

Loukas uses a four-year cycle to identify tops and bottoms in the Bitcoin market. Historical similarities may help identify when the market will peak in the current cycle. 

Loukas sees Bitcoin currently accumulating in a descending broadening wedge following its drop from the $73,835 all-time high reached on March 14. He predicts that Bitcoin could soon enter a parabolic uptrend, buoyed by shifting investor investment and interest-rate cuts.

“An 8-month base has been built, sentiment reset, and rates are easing. I mean, the script is perfect.”

Loukas’ analysis comes amid general market uncertainty and fear, driven by continued geopolitical tensions, the upcoming United States presidential election and doubts about the health of the US economy. 

Given the above, bulls may have to hold out the eight-month base in October by producing a monthly candlestick close above the upper trending line of the broadening wedge pattern to confirm entry into the third year of the cycle. 

In light of this optimistic outlook, analysts at blockchain analytics firm Santiment observed heightened levels of investor interest in Bitcoin in the fourth quarter. They said:

“Analysts and community members continue their optimism about “Uptober” and the potential for a bull run in 2024. There is also a growing institutional interest in Bitcoin, particularly with the anticipation of further spot ETFs.”

If speculative buying continues, the resulting FOMO could lead to a significant bounce, as predicted by Loukas.

With rising institutional demand and a return of net inflows to US-based spot Bitcoin ETFs, Bitcoin could follow the positive Q4 narrative and continue the four-year cycle.