Many have welcomed the recent rally with open arms, as it allowed Bitcoin (BTC) to surpass key resistance levels in the $4,000 region. However, this move, which caught many traders with their pants down, throws a massive wrench into one of the most famous charts in this industry, which depicts the lead cryptocurrency following a predictable chart that could theoretically be stretched out into infinity.
As seen below, BTC has long followed a cycle of booms and busts, rallying to new highs, pulling back, before doing the same all over again. In fact, for its whole life as a tradable, liquid asset, Bitcoin’s approximate price action could be somewhat charted in advance. But, BTC’s recent foray past $5,000 quashes this cycle, as BTC is now not following its parabolic trend no longer.