Analyst Kevin Svenson analyzed the latest developments in the cryptocurrency market, thinking that Bitcoin has significant upside potential in December. According to Svenson, this bullish expectation is based on the reemergence of a certain pattern observed in the crypto king’s price movements. Svenson emphasizes that the price dynamics in a period three years ago are similar to the current Bitcoin chart. Here are the details…
Towards the end of 2020, Bitcoin’s consolidation around $14,000 stands out as a similarity that caught Svenson’s attention. According to the analyst, this similarity may be a repetition of a certain pattern that appeared before major bullish periods in Bitcoin’s history. This could be a sign of a significant move in the market.
To support his analysis, Svenson uses two charts showing BTC’s recent market structure. shared and the relative strength index (RSI) level looks “strikingly similar” to Q4 2020.
“Bitcoin [Ekim -> Kasım] 2020/2023
NEWS CONTINUES BELOWExactly three years ago BTC was in a strikingly similar pattern.
“The 50 level on the daily RSI was the target before the next rise.”
NEWS CONTINUES BELOW
According to Svenson’s analysis, Bitcoin’s daily RSI is expected to drop to the 50 level before moving forward in the future. RSI is known as an indicator that measures the overbought or oversold status of an asset. Svenson suggests that this potential correction move is intended to stabilize the market and lay the foundation for a new rise.
For investors, this may indicate an opportunity to buy Bitcoin at low prices. Svenson also notes that Bitcoin bulls were historically bullish in the last month of the year before the halving.
The next halving event is expected to occur in April 2024.
“The holiday season before the halving is almost always bullish.”
Given the volatility and uncertainty of cryptocurrency markets, it is important to approach such predictions with caution. Svenson’s analysis is a prediction based on past performance and it is not always possible to guarantee future price movements. Investors should do their own research and develop strategies that suit their risk tolerance.
Finally, at press time, Bitcoin is trading at $38,233.
You can follow the current price movement here.