A closely followed crypto strategist is bullish on Bitcoin (BTC), saying that the king crypto could be gearing up to do the unthinkable.
In a new video, analyst Kevin Svenson tells his 121,600 Twitter followers that Bitcoin could hit $30,000 much sooner than people expect.
According to the crypto trader, momentum is on the side of BTC bulls following the breakout from a large falling wedge formation, which suggests a major shift in trend.
“We are now in a bullish trend shift… But what is interesting to me is the daily RSI [relative strength index]. We’re bouncing off the 70 level on the daily RSI. We’re bouncing off the overbought zone, the unthinkable. The bears never thought this was going to be possible. But it has happened before.”
Traders use the RSI the gauge the strength of an asset’s momentum. Traditionally, an asset trading above the 70 level of the RSI is considered as overvalued and needs to cool off. However, there are instances when an asset refuses to go below the 70 level due to intense buying.
Svenson adds that Bitcoin also hovered in the overbought zone on the daily chart in late 2020 after taking out resistance at $20,000, a breakout that eventually led to a rally above $60,000.
“When Bitcoin [broke] $20,000 for the first time, we remained in overbought zone for quite sometime, and Bitcoin went up 60%. It went into overbought territory and stayed there for a 60% run. These things are possible.”
With Bitcoin now trading above the diagonal resistance of the falling wedge pattern, Svenson believes that BTC is likely en route to $30,000 before the king crypto undergoes any significant correction.
Looking at Svenson’s chart, he appears to be predicting a massive Bitcoin rally to around $50,000 following the corrective move below $20,000.
At time of writing, BTC is trading at $23,026.Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
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