A closely followed analyst believes that December will be a bullish month for Bitcoin (BTC) as the crypto king mirrors a setup last witnessed exactly three years ago.
Kevin Svenson tells his 131,000 followers on the social media platform X that Bitcoin appears to be mimicking its late 2020 price action when BTC was consolidating around $14,000 before a massive move to the upside.
The trader shares two charts that show BTC’s latest market structure and relative strength index (RSI) level appear to be “strikingly similar” to its Q4 2020 setup.
The RSI is a momentum indicator that can signal the continuation of a trend.
Says Svenson,
“Bitcoin [Oct -> Nov] 2020/2023
Exactly three years ago BTC was sitting in a strikingly similar setup.
The 50 level on the daily RSI was the target before the next leg up.”
Looking at the trader’s charts, he seems to predict that Bitcoin will witness one more corrective move which would enable the daily RSI to fall to the 50 level before the next rally begins.
Svenson also notes that Bitcoin bulls have historically stepped up during the final month of a pre-halving year.
The halving, which slashes miners’ rewards in half, is expected to take place in April 2024.
Says the trader,
“The holiday season before a halving is almost always bullish.”
At time of writing, Bitcoin is trading for $38,026, up 1.33% in the last 24 hours.
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