With Bitcoin (BTC) consolidating below its 2021 high of $69,000, veteran cryptocurrency analyst Bob Loukas believes the leading digital asset is on the verge of its most explosive stage yet.
In terms of the four-year cycle of Bitcoin, Loukas says that Bitcoin is close to the third year—a point in time when explosive growth normally takes place.
"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 October 8 post on social media.
His analysis, which is based on identifying market peaks and troughs using the four-year cycle, is being presented in times of extreme uncertainty as markets await developments on the geopolitical front, the U.S. presidential election, and fears over economic stability.
Loukas said Bitcoin was building up inside a descending broadening wedge pattern after pulling back from the high of $73,835 dated March 14. He nonetheless remained positive about the chances of Bitcoin, considering all recent consolidation.
"An 8-month base has been built, sentiment reset and rates are easing. I mean, the script is perfect," Loukas said, adding that a combination of flipping investor sentiment and likely interest rate cuts could trigger a parabolic uptrend.
For this bullish scenario to come into play, market participants will need to push Bitcoin above the upper trendline of the broadening wedge pattern by the end of October to confirm entry into the cycle's third year.