Analyst Kevin Svenson is offering his outlook on Bitcoin (BTC) as the flagship crypto asset hovers around 24% below the all-time high.
In a new strategy session, Svenson tells his 82,800 YouTube subscribers that Bitcoin is at a critical juncture that could determine the crypto king’s price direction over the coming weeks and months.
According to Svenson, Bitcoin is sitting just above a parabolic trend that started in early 2023 and the next move the flagship digital asset makes will be decisive.
“…we are currently just above it [parabolic trend line]. But it’s getting a pretty close call here. Bitcoin can’t spend too much time going sideways. And it also can’t spend really any time on the weekly [time frame] going down, without breaking the parabolic trend.
So this is pretty much the last leg – it’s either going to hold here and start to trend upward or it’s going to end up turning into something else. Maybe a sideways low.”
Svenson says that if Bitcoin turns lower instead of going higher, it could plunge to levels last recorded in November.
“The other option is that we just break down and go into, maybe the high $60,000s.
Right now, there are signs pointing to the idea that we may enter a stage where the market is in a lull, where we actually kind of just chop sideways for a while exit, this parabolic trend and go into a more of an accumulation zone.”
Bitcoin is trading at $82,900 at time of writing.
The analyst says that if the bulls prevail, Bitcoin has more upside potential based on the weekly Relative Strength Index (RSI), a momentum oscillator used to determine overbought and oversold levels.
“If Bitcoin plays out a bullish scenario, whether we go up sooner or accumulate for longer, and we run up to a new high a new all-time high, it’s likely that the weekly RSI would actually be at a lower high. Basically testing the overbought zone before pulling back.
And it’s possible that that would be the cycle high. So I do see that Bitcoin could test the overbought levels on the weekly, which means there’s quite a lot of upside to play out before the market gets totally overheated.”
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