Cryptocurrency analyst and trader Kevin Svenson is leaning bullish on Bitcoin (BTC).
In a new strategy session, Svenson tells his 82,800 YouTube subscribers that technical analysis indicators are signaling that Bitcoin could break out from the long-term downtrend that started in December of 2024.
[adinserter block="1"]Svenson says that on both the four-hour and the daily time frame, a downtrend line is converging with an uptrend line, a phenomenon that is also being replicated by the Relative Strength Index (RSI) indicator. The RSI is a momentum oscillator that’s used to determine oversold and overbought conditions.
“…so we’re getting a break above horizontal resistance on the daily RSI and the long-term downward sloping resistance. So there is a breakout now confirmed on the daily RSI. And this may be a leading indicator, a leading signal that Bitcoin may also create a breakout in the near term.”
According to Svenson, the Moving Average Convergence Divergence (MACD), a momentum-based technical indicator that is used to determine trends and pinpoint potential buy and sell points, is also flashing a bullish signal for Bitcoin.
“On the daily MACD, the bulls have the momentum as we’re resting right upon resistance. This could give us a reason to believe that we may see a breakout…”
The crypto analyst also says that Bitcoin has formed a bullish ascending triangle pattern on the three-day time frame and could go up by around 13% from the current level.
“To get your target for the measured move, you go from the high to the low of the [ascending triangle] pattern and then extrapolate that onto the potential breakout zone… which is actually giving us a pretty stunning number. I mean $98,000… I guess it’s not too crazy to believe because we had this huge dump. We would basically just be regaining that lost ground from that big week down that we saw.
So right now we may just create a U-shaped recovery that seems to be what we’re setting up for now.”
Bitcoin is trading at $86,551 at time of writing.
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