If popular analyst Kevin Svenson is to be believed, Bitcoin is currently mirroring an extremely bullish scenario from the past. Bitcoin breaks out of a reversal bottom pattern, according to Svenson. The analyst calls this “very bullish” in his new analysis on YouTube.
Reversal Bottom Pattern
“We are breaking out of a reversal bottom pattern. That’s very bullish. I would say… Bitcoin is also trading above its Relative Strength Index (RSI) downtrend line on the daily chart. That is another signal for upward continuation,” Svenson said.
The RSI is a momentum indicator from technical analysis, which indicates whether an asset is overbought or oversold. If an asset has been overbought (overheated), this does not necessarily mean that we are ready for a decline.
According to the analyst, Bitcoin is currently mirroring bullish price action that we also saw before rising to the $73,800 level in March (Bitcoin’s current all-time high).
“This is no different than the zone we saw at the start of 2024, when there was sideways consolidation, downside resistance on the RSI and a breakout before rising to new all-time highs,” he said. Svenson continues.
Fourth phase of a parabolic curve
Svenson claims that Bitcoin is currently in the fourth phase of a parabolic curve, which should theoretically peak at the $90,000 level.
In technical analysis, a parabolic curve is a pattern consisting of four phases or bases in which the price trades in a specific range before breaking out and continuing the uptrend.
“The next textbook target is $90,000. By the way, that is not the peak for this cycle,” says Svenson. He believes that Bitcoin can ultimately rise further than the $90,000 he foresees in the short term.
What do you think? Can Bitcoin really rise to the $90,000 level in the short term?
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Source: https://newsbit.nl/bitcoin-spiegelt-extreem-bullish-scenario/
