Bitcoin is showing bullish signals that are reminiscent of earlier this year, according to cryptocurrency analyst and trader Kevin Svenson. Svenson, who has a following of 78,100 subscribers on YouTube, explains that Bitcoin is breaking out of a reversal bottom pattern, which indicates a bullish trend. He also points out that Bitcoin is currently above the downtrend line on the Relative Strength Index (RSI) on the daily chart, which suggests a continuation of the upward movement. The RSI is an oscillator used to identify oversold or overbought conditions.
Svenson highlights that the current price action of Bitcoin is similar to what was observed before the cryptocurrency surged to around $73,737 in mid-March. He states that Bitcoin is in the fourth stage of a parabolic curve pattern, which consists of four bases where the price trades in a range before continuing its upward trajectory. According to Svenson, this pattern could potentially lead Bitcoin to peak at $90,000. However, he believes that Bitcoin may need to cool down before reaching this target.
In terms of the overall bull cycle, Svenson suggests that Bitcoin could go even higher than $90,000, considering the recent halving event. He speculates that Bitcoin may reach the parabolic trend target of $90,000 and then experience a breakdown of that trend followed by a sideways consolidation. Afterward, there could be a further push up, creating a larger and more expansive parabolic trend.
It’s important to note that the opinions expressed by Svenson and others at The Daily Hodl are not investment advice, and investors should conduct their own research before making any high-risk investments in Bitcoin or other cryptocurrencies. The Daily Hodl also does not recommend buying or selling any cryptocurrencies or digital assets, and readers should be aware that their transfers and trades are at their own risk.
