Opinion: Past patterns point to a parabolic Bitcoin rally in 2021

Bitcoin may experience a ‘parabolic’ rise in 2021, in line with Bitcoin’s price surges in 2013 and 2017. The view was voiced by Mike McGlone, Bloomberg Intelligence’s senior commodity strategist.

According to him, this could occur if the patterns observed in those years recur.

#Bitcoin may undergo a parabolic 2021, as it did in 2013 and 2017, if previous patterns play out again. New highs are a next potential iteration and may be only a matter of time unless something we don’t foresee trips up the trend of greater adoption and demand vs. limited supply pic.twitter.com/w742J7bXfC

— Mike McGlone (@mikemcglone11) November 4, 2020

New highs are the next potential iteration. It could be only a matter of time unless something unforeseen happens that disrupts the trend of broader adoption of Bitcoin and the demand-supply balance,

The May halving is seen by many investors as one of the main factors that could push Bitcoin’s price to new highs. The reduction of miners’ rewards from 12.5 BTC to 6.25 BTC led, for example, to Bitcoin’s annual inflation running below that of gold, the leading defensive asset among investors.

The first halving occurred in 2012, and by the end of 2013 the price of Bitcoin rose above $1,000 for the first time.

Speculators were behind Bitcoin’s price rise in 2013

After the second halving in July 2016, Bitcoin began a steady rise and reached a historic high of around $20,000 in December 2017.

As of October, the Bitcoin chart’s monthly candle closed above $13,000 for the first time since December 2017.

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