Bitcoin (BTC) Price Prediction: Bitcoin Market Cycle Theory Signals Parabolic Gains Ahead Despite Short-Term Dip

Bitcoin price today shows resilience despite a recent pullback, with analysts pointing to historical cycles that suggest a major rally could be on the horizon.

Recent Bitcoin news highlights both optimism and caution as traders assess technical indicators, macroeconomic conditions, and long-term growth potentials.

Market Overview: Bitcoin Technical Analysis Shows Mixed Signals

As of August 22, 2025, Bitcoin traded at $112,388, slipping 0.8% on the day according to Brave New Coin data. Despite this dip, many analysts remain focused on the broader cycle rather than short-term volatility. Technical charts reveal a double bottom pattern, a formation often linked to reversals. Historically, Bitcoin has staged strong rebounds from similar setups, including a 50% surge in April 2025 and a 25% rally in June 2025.

Bitcoin’s daily chart shows continued weakness, closing below the moving average with a death cross forming. Source: Finanacialfreedom11 on TradingView

Indicators such as the Bitcoin RSI still show room before reaching overbought conditions, reinforcing the case for more upside. Yet some traders warn that Bitcoin may test lower levels first. Analyst Marcus Corvinus expects a short-term correction toward $104,000 support, describing it as a “standard reset” within an otherwise bullish trend.

Bitcoin Cycles and the 3-Year Growth Zone

Market cycle theory remains central to the current Bitcoin price prediction. Merlijn The Trader, a well-followed analyst, highlights Bitcoin’s recurring four-year rhythm—one year of decline followed by three years of growth. This cycle has historically aligned with parabolic surges, most notably in 2013 and 2017, when Bitcoin posted gains of more than 100% in late-stage rallies.

Bitcoin has entered its three-year growth zone, with the parabolic phase unfolding and the largest gains expected in the final stage of the cycle. Source: Merlijn The Trader via X

According to Merjilin, Bitcoin is entering the three-year green zone, the phase where the biggest upside historically occurs, comparing 2025 to the breakout patterns seen in 2020. He believes that the present structure could fuel an even stronger move given today’s market maturity and rising institutional interest.

Trend Factors: Bitcoin Halving 2025, Whales, and Macro Outlook

Looking ahead, catalysts such as the Bitcoin halving in 2025 are expected to tighten supply and potentially accelerate price gains. Halving events historically coincide with major rallies as miner rewards shrink, boosting scarcity.

Bitcoin (BTC) was tradin at around $112,388, down 0.82% in the last 24 hours at press time. Source: Bitcoin Liquid Index (BLX) via Brave New Coin

Meanwhile, Bitcoin whale alerts have revealed large transfers in recent weeks, fueling speculation about accumulation ahead of the next big move. Combined with macroeconomic shifts—such as expectations of a weaker U.S. dollar and possible rate cuts—analysts suggest that Bitcoin could benefit from a friendlier environment for risk assets. A 2023 NBER study found that looser monetary policy often correlates with strong Bitcoin bull phases.

Expert Insights: Forecasts on Bitcoin’s Next Move

While short-term pullbacks remain a risk, multiple experts argue the long-term picture favors a bullish trajectory. Analyst Doomer highlighted Bitcoin’s series of higher lows, suggesting that the correction phase is nearly complete. He sees potential for Bitcoin to rebound toward $95,000–$100,000 before setting new highs.

Bitcoin’s newly formed double-bottom pattern signals a potential launchpad, with projections pointing toward $127K before Q3 ends. Source: ZYN via X

Merlijn’s chart overlay comparing 2020 and 2025 also strengthens the bullish thesis, hinting that the current cycle could surpass the 2020 rally in magnitude. Still, some caution remains. Despite anecdotal evidence of recurring market cycles, no peer-reviewed research confirms them as a reliable predictor. As one academic study in the Journal of Finance noted, technical formations such as double bottoms show about 70% accuracy in trending markets but depend heavily on volume confirmation, which remains uncertain in Bitcoin’s case.

Looking Ahead: Bitcoin Long-Term Outlook

Despite near-term weakness, the prevailing view is that Bitcoin’s next move could be upward once consolidation plays out. Analysts eye the $127,000 level by the end of Q3 2025 if bullish chart patterns hold, with longer-term projections suggesting even greater gains in the years following the Bitcoin halving 2025.

For now, the market sits at a crossroads—short-term dips test investor patience, but the broader cycle points toward Bitcoin’s enduring potential as both a store of value and an inflation hedge. Traders will closely watch support around $104,000, ETF developments, and whale activity as signals for when the next parabolic phase begins.