Bitcoin (BTC) is poised for its third parabolic run of this cycle, according to a renowned crypto strategist. In a recent YouTube video, analyst Kevin Svenson stated that Bitcoin seems to be following a similar pattern to its 2017 price action, where it experienced three parabolic phases before the end of its bull market.
Svenson highlighted that in 2017, there were multiple phases of the parabolic trend, with shorter-term parabolic trends breaking down into larger ones. Eventually, there was a major vertical run towards the end. He believes that the current situation in 2024 is similar and sees no reason why history couldn’t repeat itself. Svenson emphasized the need for renewed optimism and regained momentum.
Svenson pointed out that technical indicators indicate a shift in momentum towards BTC bulls. He specifically mentioned Bitcoin’s relative strength index (RSI), a momentum indicator, which found support at a certain level during the second parabolic phase of this cycle. He noted that the weekly RSI bounced off the support level around 45, suggesting a potential expansion of the trend.
Additionally, Svenson discussed Bitcoin’s moving average convergence divergence (MACD), a trend indicator, which indicates that BTC bulls are regaining control of the market. He mentioned that the weekly MACD is showing a decrease in bearish momentum and an increase in bullish momentum. Historically, when the weekly MACD histogram turns around, it often leads to a significant increase in price speed.
As of the time of writing, Bitcoin is trading at $65,469, reflecting a 15% increase over the past seven days.
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