Popular crypto analyst Kevin Svenson has projected that Bitcoin (BTC) might reach $100,000, despite the current market downturn. Speaking to his YouTube followers, Svenson highlighted a bullish divergence pattern emerging on Bitcoin’s daily chart, suggesting an uptrend in the cryptocurrency’s near future.
What Does Bullish Divergence Indicate?
A bullish divergence occurs when an indicator like the Relative Strength Index (RSI) trends upward while the asset’s price either falls or stagnates. This typically signals strengthening bullish momentum. Svenson explained that a slight increase in the RSI, paired with lower lows recorded above horizontal support, confirms a bullish divergence.
Svenson identified an expanding formation on the Bitcoin chart, which he considers a potential bullish continuation pattern. According to him, the resistance level for this formation stands at $68,000. Should Bitcoin break this resistance, it could see a 60% surge from its current price.
When Will Bitcoin Reach These Targets?
Svenson advised caution, noting that Bitcoin’s price might be constrained between $49,000 and $70,000 for some time. He suggested that a breakout could potentially occur in September. Currently, Bitcoin is trading at $60,555, and Svenson recommends patience and readiness for a significant potential rise.
Key Insights for Investors
- Bitcoin’s bullish divergence pattern suggests an uptrend.
- The key resistance level to watch is $68,000.
- Potential price targets identified are $88,000, $97,000, and $113,000 based on Fibonacci extensions.
- Investors should remain patient and be prepared for a breakout, possibly in September.
Kevin Svenson’s detailed analysis offers a cautiously optimistic view of Bitcoin’s potential rise, targeting a significant surge if key resistance levels are surpassed. Investors are encouraged to stay patient and vigilant as the market navigates these critical thresholds.