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Bitcoin's 'Golden Ratio' Correlation Forecasts Upcoming Parabolic Rally for BTC

Following a phase of consolidation, Bitcoin (BTC) is beginning to show signs of a rebound.

On August 9, noted crypto trading analyst TradingShot presented a Bitcoin price forecast on TradingView, utilizing the 'Golden Ratio' correlation. This influential indicator, based on the Bitcoin to Gold/Russell 2000 (GOLD/RUT) ratio, has historically proven to be a dependable predictor of Bitcoin’s significant price surges.

The Historical Significance of the 'Golden Ratio' Correlation

The analysis indicates that the chart pattern is starting to reemerge, hinting at a possible significant upward movement.

This pattern underscores a notable correlation between Bitcoin’s price and the GOLD/RUT ratio, which reflects the relationship between Gold and the Russell 2000 Index.

Historically, when the GOLD/RUT ratio reaches a peak and then begins to form Lower Highs, Bitcoin often experiences a parabolic rally. This recurring pattern suggests that the GOLD/RUT ratio can act as a leading indicator for Bitcoin’s price trends, with declines in the ratio potentially signaling the onset of a major BTC rally.

Following the 2016 halving, Bitcoin saw a substantial upward surge that led to the 2017 bull market, where prices soared to nearly $20,000.

Similarly, the 2020 halving preceded an even more pronounced rally, driving Bitcoin to a peak of approximately $68,000 in late 2021.

These historical trends suggest the possibility of another major rally if the current cycle adheres to previous patterns.

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Current Market Analysis and Future Projections

Based on recent data, the GOLD/RUT ratio appears to have peaked in April 2024. If this ratio begins to form Lower Highs, similar to past cycles, Bitcoin could be on the verge of entering a highly aggressive bull phase, marked by a rapid and steep price surge.

If Bitcoin's parabolic rally materializes as anticipated, a realistic short-term target would be between $80,000 and $85,000. This range exceeds the previous all-time high of $73,000 and corresponds with the expected sharp rise during this phase of the bull cycle.

In the longer term, if the rally gains substantial momentum, Bitcoin might reach between $100,000 and $120,000 during this cycle. This projection is grounded in the historical patterns of Bitcoin’s price movements during previous parabolic phases, particularly following halving events.

Bitcoin Price Evaluation

Currently, Bitcoin is trading at $60,637, showing a slight increase of about 0.02% in the past 24 hours.

If Bitcoin adheres to the chart patterns, the next significant price targets could be between $80,000 and $120,000. This projection is based on the assumption that the GOLD/RUT ratio will continue to produce lower highs, which would signal the onset of Bitcoin's next parabolic surge.

In the near term, Bitcoin is anticipated to break through the $70,000 resistance level, potentially setting the stage for a new all-time high. However, it's important to note that past performance does not guarantee future results, and the cryptocurrency market remains highly volatile.

Investors should stay alert and take into account market conditions and other external factors that could impact Bitcoin’s price trajectory.