Bitcoin Might be Entering Third Parabolic Phase as Selling Pressure Cools

Bitcoin analysts are pointing to a rare alignment of technical cycles and on-chain data that could set the stage for its next explosive run.

Trader Merlijn has highlighted that Bitcoin has now entered its third parabolic phase, a pattern that previously unfolded in both 2017 and 2021. In each case, the market saw dramatic upside, with portfolios multiplying as price action accelerated.

The latest cycle, projected to peak in 2025, suggests Bitcoin may once again be preparing for a steep upward trajectory, with some models pointing toward six-figure valuations.

On-chain indicators appear to support the timing. According to CryptoQuant, the Value Days Destroyed (VDD) metric – which measures activity from long-term holders – has shifted lower after months of elevated readings.

When VDD spikes, it usually reflects heavy selling from seasoned wallets, but the recent cooling indicates that supply pressure is easing. With fewer coins being offloaded by long-term investors, the market may be primed for fresh demand to drive the next rally.

The convergence of these signals is drawing attention from both traders and institutions. Analysts argue that Bitcoin’s cyclical behavior, combined with reduced selling pressure, creates a setup similar to past bull runs.

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However, they also stress that parabolic phases rarely move in straight lines. Sharp pullbacks, profit-taking, and volatility are all part of the process before new highs are reached.

With Bitcoin consolidating at elevated levels, the question facing investors is whether to brace for short-term turbulence or lean into what could become one of the defining bull cycles in the asset’s history.