Bitcoin’s Third Parabolic Phase: On-Chain Data Fuels Six-Figure Price Predictions for 2025

Bitcoin appears to be on the cusp of entering its third major parabolic growth phase, a development keenly observed by market analysts. A distinctive convergence of historical technical cycles and evolving on-chain data suggests a powerful surge akin to previous explosive rallies. This potential shift is characterized by a notable reduction in selling pressure, setting the stage for significant price appreciation.

• Bitcoin is potentially entering its third major parabolic growth phase.
• A unique convergence of historical technical cycles and on-chain data is signaling this shift.
• The current market environment shows a notable reduction in selling pressure.
• Analyst Merlijn identifies patterns mirroring the 2017 and 2021 bull markets.
• On-chain data, specifically declining Value Days Destroyed (VDD), indicates waning selling from long-term holders.
• Market models project the cycle’s zenith in 2025, with potential six-figure valuations.

Understanding Bitcoin’s Parabolic Phases

The concept of a “parabolic phase” describes periods of accelerated, non-linear growth in asset value. Trader Merlijn, for instance, has highlighted that Bitcoin is now demonstrating patterns previously seen in its 2017 and 2021 bull markets. These historical periods were marked by dramatic increases in value, often leading to substantial portfolio expansion for investors who held through the cycle. The sentiment is encapsulated in observations shared by market participants:

BITCOIN’S PARABOLIC PHASE IS UNSTOPPABLE.

Two cycles never failed. The third just started.

This is where portfolios 10x.

Are you riding… or watching? pic.twitter.com/FXYxAfMNKz

— Merlijn The Trader (@MerlijnTrader) September 5, 2025

On-Chain Data Reinforces Bullish Outlook

Further reinforcing this outlook are insights from on-chain analytics. According to data from CryptoQuant, the Value Days Destroyed (VDD) metric, which measures the activity of long-term holders, has begun to decline after several months of elevated readings. Historically, rising VDD values signal increased selling by seasoned investors. The current cooling trend, therefore, indicates that selling pressure from these long-term holders is waning. This reduction in available coins for sale, coupled with anticipated new demand, could serve as a powerful catalyst for the next rally.

Market Projections and Essential Caution

The alignment of these technical and on-chain indicators paints a compelling picture for Bitcoin’s near-term trajectory. Current market models predict that this cycle could reach its zenith in 2025, with some projections even forecasting a path toward six-figure valuations for the digital asset. This convergence of signals is attracting considerable attention from both retail traders and institutional players, reminiscent of previous bull markets.

However, investors must exercise caution, as parabolic phases are rarely linear. Market experts consistently emphasize that sharp corrections, profit-taking episodes, and significant volatility are inherent features of such growth cycles, often preceding the establishment of new all-time highs. The prevailing question for market participants is whether to strategically navigate these anticipated short-term fluctuations or to position for what could potentially become one of Bitcoin’s most defining bull runs in its history.