A closely followed crypto strategist has mapped out how Bitcoin could form a bear market bottom this year as BTC trades below $20,000.
In a strategy session, Kevin Svenson told 69,000 YouTube subscribers that Bitcoin could bottom between $17,000 and $18,000 before starting a relief rally above $30,000.
“Weekly RSI as Bitcoin hits real bottom after forming lower low [göreceli güç endeksi] before it breaks, it will form bullish divergence (positive divergence) with a higher low. Lower lows in price, higher lows in RSI mean higher relative power levels…
I think Bitcoin could trade below $20,000 for a very short time and put the market in maximum fear for the weak hands to be completely shaken… It wouldn’t surprise me to see such a pattern come to market.”
The RSI is a momentum indicator, and a positive divergence is one of the signals that a trend reversal may occur. Although Svenson expects to rally after Bitcoin has made a real bottom, he does not expect BTC to start a new bull market in the near future.
“Ultimately, this recovery will take a long time. We have a downtrend. The current trend is your friend until the end of the trend and Bitcoin is currently in a downtrend. So, breaking above this major bearish resistance is the next hurdle this market will face. Breaking this hurdle may take until the end of the year for us to have a truly confirmed breakout.”
According to Svenson, Bitcoin could trade in the narrow range seen above for months after breaking the cross resistance. The analyst also predicts that Bitcoin could start a new uptrend by 2024.
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Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, KoinFinans and the author of this content cannot be held responsible for personal investment decisions.