Cryptocurrency analyst and trader Kevin Svenson evaluated the current developments in the Bitcoin (BTC) market and offered an optimistic perspective that a major rise may be possible in the coming days and weeks. According to Svenson’s analysis, a weekly close for Bitcoin above the $44,000 resistance zone could open the possibility for this leading crypto asset to surge over 40% from the current level.
The first point Svenson emphasizes in support of this view is the overcoming of resistance levels, which play an important role in technical analysis. Bitcoin breaking the $44,000 resistance zone is considered a harbinger of positive momentum in the market and could contribute to increased confidence among investors. This could trigger a significant increase in Bitcoin’s value, as Svenson noted.
“If Bitcoin makes a weekly close above resistance, this would give us a signal that the market is starting to favor the bullish side, that the bulls are in control, which would be a reason to expect an uptrend…
So if this happens and the price can eventually move towards this wick (near $49,000), it is unclear whether it will take a week, two weeks, or three weeks. If we move this wick to the high and actually get a breakout above this level, then any positions that are still short will be considered trapped liquidity. Because now they have no other choice. The price is above the wick, all their positions become liquid and there is nowhere else to go…
NEWS CONTINUES BELOWThat puts us above $60,000, which is the target of this setup; theoretically trapped liquidity setup for the bullish side.”
Additionally, Svenson states that there are other factors supporting Bitcoin’s rise. Factors such as technical setups, high demand, upcoming halving can make Bitcoin stand out:
“We have a trending market, with higher lows and a high degree of demand for Bitcoin right now…
My point is, there are many factors starting to play a role in this major move that could occur on a breakout of $49,000. These could easily get us there (about $60,000). However, the other factor that I also consider is a psychological factor; Most people will want to invest before the halving. “Anyone who knows Bitcoin, knows about the halving, and has been watching the news lately will probably want to buy BTC before this event.”
Bitcoin is trading at $42,096 at the time of writing this article.
You can follow the current price movement here.