A closely tracked crypto strategist who continues to build his following with timely Bitcoin (BTC) calls says the leading digital asset could be gearing up for a significant rally.
Crypto analyst Kevin Svenson tells his 110,200 Twitter followers that he’s looking at Bitcoin’s moving average convergence divergence (MACD) indicator on the three-day chart which suggests that BTC is likely setting up for a sustained bounce.
Traders rely on the MACD to spot either trend reversals or continuations.
“Bitcoin three-day MACD cross will likely lead to continuation up. The three-day candle closes tonight. We’re very likely going to confirm the cross soon.”
As for Bitcoin’s short-term market structure, Svenson says that BTC is flashing a “textbook” Adam and Eve double bottom pattern.
#Bitcoin Adam & Eve is very clear.
Looks like it's straight out of a textbook.
This is a bullish reversal pattern. pic.twitter.com/kdAnDOpZfV— Kevin Svenson (@KevinSvenson_) July 7, 2022
Looking at lower timeframes, Svenson says that BTC might be trading within a bullish pennant pattern with support around $21,400.
“BTC testing the bottom of the formation. Needs to hold this area to maintain structure.”
Although Svenson appears bullish on BTC, he reminds his followers that Bitcoin is still in a long-term bear market.
“‘The trend is your friend until the end of the trend.’
The short term trend is up with some momentum.
The long-term trend is down. Deep in bear territory
In the short to medium term, I’m playing this bullish but being cautious about a macro lower high dump later on.”
At time of writing, Bitcoin is changing hands at $21,455.
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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.
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