Experienced cryptocurrency analyst Kevin Svenson has expressed a positive outlook on Bitcoin (BTC) in a recent video update, forecasting that the largest cryptocurrency could be on the brink of its third major parabolic run in the current market cycle. Svenson anticipates a significant bull run in the Bitcoin market.
How Does 2017 Compare?
Svenson compared Bitcoin’s current price action to its behavior in 2017, presenting his analysis to YouTube subscribers. During 2017, BTC went through three distinct parabolic phases before hitting a peak in the bull market. Svenson highlighted that Bitcoin’s price moved through multiple short-term parabolic trends, each evolving into a larger trend and culminating in a major price surge towards the end of the bull market. He pointed out that for a similar pattern to occur in 2024, the market needs renewed optimism and momentum.
What Do Technical Indicators Show?
Svenson indicated that technical indicators are supporting this bullish outlook. He emphasized Bitcoin’s Relative Strength Index (RSI), noting it found support around the 45 level on the weekly chart. This level had previously marked the beginning of Bitcoin’s second parabolic phase in the current cycle. This support suggests that BTC might be entering a trend expansion zone.
Additionally, he highlighted the Moving Average Convergence Divergence (MACD) indicator, which also signals a bullish trend. The weekly MACD shows signs of decreasing bearish momentum and rising bullish momentum. Historically, such reversals in the MACD histogram have been linked to substantial price increases for Bitcoin.
Actionable Insights
Actionable Insights:
– Monitor Bitcoin’s RSI for signs of support around the 45 level.
– Watch the MACD for indications of decreasing bearish momentum.
– Look for renewed market optimism and momentum to confirm potential bullish trends.
Svenson’s analysis implies that Bitcoin could be gearing up for a significant upward move, following a pattern similar to its 2017 performance. According to Svenson, technical indicators such as RSI and MACD suggest that momentum is shifting towards a bullish trend.