Top traders say Bitcoin’s logarithmic chart points to a bullish cycle similar to that of late 2017

As the price of Bitcoin rises to a new yearly high, major traders say that the monthly and logarithmic charts indicate that BTC is entering a new bullish trend.

Peter Brandt, a highly respected veteran trader, recently emphasized that the high demand from institutions is a key catalyst for Bitcoin’s strong performance.
1 month chart of the BTC/USD pair. Source: TradingView

BTC’s solid technical structure in the longer time frames, especially the weekly chart, and strengthened fundamentals are driving current market sentiment. In a tweet, Brandt posted the above chart and said

„Bitcoin, if current gains hold through the end of October, is poised for the second highest monthly close in its history. The $BTC institutions are increasingly involved in having Bitcoin. The institutions record the value of their assets on a monthly basis.

In addition to the increase in trading volume and the growing institutional appetite, investors are referring to the logarithmic graph to forecast a broader rebound.

Raoul Pal focuses on Bitcoin’s log chart

The logarithmic price chart is the most widely used scale by most technical analysts. A logarithmic chart simply means a chart that represents common percentage changes with the same spacing on a scale.

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Raoul Pal, founder and CEO of Real Vision Group, says Bitcoin’s monthly log chart is very optimistic. He wrote:

„It’s a bitcoin day. The monthly logarithmic graph with regression lines is really something worth seeing. One of the most beautiful and powerful chart patterns I’ve ever seen.

The technical reason behind the optimism of the monthly logarithmic chart is mainly its clean break. Over the past four years, the USD 13,000 has acted as a strong resistance level.
As such, in longer time frame charts, such as the weekly and monthly chart, Bitcoin always closed below $11,000, except in 2020.

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Bitcoin’s clean technical break in the monthly time frame is leading traders and investors like Brandt and Pal to make big upward predictions about Bitcoin’s price action. As Pal said, „If history rhymes, 2021 is going to be a BIG year.

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Apart from the numerous technical catalysts and bullish fundamentals, the timing of the current movement is also in favor of a significant Bitcoin upward cycle.
Quarterly Bitcoin yields in percent.

According to Skew’s data, Bitcoin has not had three consecutive positive quarters since 2017. During that year, Bitcoin reached an all-time high of $20,000 after the second halving of the 2016 mined block reward.

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Bitcoin could be on track to experience a big jump in Q4 if it stays above $12,000. If so, that could lead to the same upward cycle pattern seen in 2017. Next year would also see the same cycle after the halving that Bitcoin experienced in 2017, further reinforcing the theory of a new upward cycle.