A closely followed analyst says he sees Bitcoin (BTC) ending its current correction and witnessing another leg up soon.
In a new video update, crypto strategist Kevin Svenson tells his 74,100 YouTube subscribers that Bitcoin may undergo a momentum shift after printing a bullish technical pattern on the low time frame.
“Bitcoin is in a position to potentially, on the four-hour chart, put in a higher low [at $64,800], which would be an inverse head and shoulders, which would be an indication of a momentum reversal, an increase in demand, a trend reversal in the short term.”
Traders sometimes watch for an inverse head and shoulders pattern as it often suggests that a bullish reversal is in sight.
With BTC successfully retesting the diagonal resistance as support, Svenson is now predicting a rally above $76,000. He also notes that the moving average convergence divergence (MACD), a momentum indicator, is flashing a bullish signal.
“Bitcoin bullish daily close. We closed above the resistance trend.
MACD histograms starting to show positive momentum returning.”
Svenson previously said that Bitcoin is in the midst of a parabolic rally that could propel BTC to as high as $90,000. He also said that Bitcoin will likely witness a big surge in volatility once BTC reaches his price target.
At time of writing, Bitcoin is worth $67,143, up 4.46% in the past day.
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