Bitcoin price gearing up for next leg of ‘acceleration phase’ — Fidelity research

A recent Fidelity Digital Assets report questioned whether Bitcoin ( $78,290.00 ) price had already seen its cyclical “blow off top” or if BTC (BTC) is on the cusp of another “acceleration phase.” 

According to Fidelity analyst Zack Wainwright, Bitcoin ( $78,290.00 ) ’s acceleration phases are characterized by “high volatility and high profit,” similar to the price action seen when BTC pushed above $20,000 in December 2020.  

While Bitcoin ( $78,290.00 ) ’s year-to-date return reflects an 11.44% loss, and the asset is down nearly 25% from its all-time high, Wainwright says the recent post-acceleration phase performance is in line with BTC’s average drawdowns when compared to previous market cycles. 

Wainwright suggests that Bitcoin ( $78,290.00 ) is still in an acceleration phase but is moving closer to the completion of the cycle, as March 3 represented day 232 of the period. Previous peaks lasted slightly longer before a corrective period set in. 

“The acceleration phase of 2010 – 2011, 2015, and 2017 reached their tops on day 244, 261, 280, respectively, suggesting a slightly more drawn-out phase each cycle.”

Related: MARA Holdings plans huge $2B stock offering to buy more Bitcoin ( $78,290.00 )

Is another parabolic rally on the cards for Bitcoin ( $78,290.00 ) ? 

Bitcoin ( $78,290.00 ) price has languished below $100,000 since Feb. 21, and a good deal of the momentum and positive sentiment that comprised the “Trump trade” has dissipated and been replaced by tariff-war-induced volatility and the markets’ fear that the US could be heading into a recession.

Despite these overhanging factors and the negative impact they’ve had on day-to-day Bitcoin ( $78,290.00 ) prices, large entities continue to add to their BTC stockpiles. 

On March 31, Strategy CEO Michael Saylor announced that the company had acquired 22,048 BTC ($1.92 billion) at an average price of $86,969 per Bitcoin ( $78,290.00 ) . On the same day, Bitcoin ( $78,290.00 ) miner MARA revealed plans to sell up to $2 billion in stock to acquire more BTC “from time to time.” 

Following in the footsteps of larger-cap companies, Japanese firm Metaplanet issued 2 billion yen ($13.3 million) in bonds on March 31 to buy more Bitcoin ( $78,290.00 ) , and the largest news of March came from GameStop announcing a $1.3 billion convertible notes offering, a portion of which could be used to purchase Bitcoin ( $78,290.00 ) . 

The recent buying and statements of intent to buy from a variety of international and US-based publicly listed companies show a price-agnostic approach to accumulating BTC as a reserve asset, and it highlights the positive future price exceptions held among institutional investors. 

While it is difficult to determine the impact of institutional investor Bitcoin ( $78,290.00 ) purchases on BTC price, Wainwright said that a metric to keep an eye on is the number of days during a rolling 60-day period when the cryptocurrency hits a new all-time high. Wainwright posted the following chart and said, 

“ Bitcoin ( $78,290.00 ) has typically experienced two major surges within previous Acceleration Phases, with the first instance of this cycle’s following the election. If a new all-time high is on the horizon, it will have a starting base near $110,000.” 

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.