A closely tracked crypto strategist is mapping out how Bitcoin could carve a bear market bottom this year as BTC trades below $20,000.
In a strategy session, Kevin Svenson tells his 69,000 YouTube subscribers that he sees Bitcoin bottoming out around the $17,000 to $18,000 level before igniting a relief rally to above $30,000.
“The weekly RSI [relative strength index] would end up printing a bullish divergence, a higher low, before breaking out while Bitcoin forms a lower low and then puts in the true bottom. Lower lows on price, higher lows on [RSI] are higher levels of relative strength…
I think Bitcoin could range in the sub-$20,000 for a very brief period to put the market into maximum fear to get the weak hands fully shaken out… I would not be surprise to see a pattern like this come into the market: just a little bit of divergence to really set in that low before the recovery takes place.”
The RSI is a momentum indicator and a bullish divergence is one of the signals indicating a possible reversal in trend.
Although Svenson is expecting a rally after Bitcoin generates a true bottom, he says he does not expect BTC to launch a fresh bull market in the near future.
“Ultimately, this recovery is going to take a long time. We have a downtrend. The trend is your friend until the end of the trend, and Bitcoin is currently in a downtrend. So getting above this major downward sloping resistance is the next hurdle for this market, and that could take until the end of the year before we really get a confirmed breakout.”
According to Svenson, Bitcoin could trade within a range for months after breaking out of the diagonal resistance. He also predicts that Bitcoin could start a new uptrend by 2024.
At time of writing, BTC is changing hands for $18,635, down almost 10% in the last 24 hours.
I
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inboxCheck Price Action
Follow us on X, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Lemberg Vector studio
