Cryptocurrency analyst and trader Kevin Svenson maintains a bullish outlook on Bitcoin (BTC).
During a recent strategy session, Svenson informed his 82,800 YouTube followers that various technical analysis indicators suggest that Bitcoin might break free from the prolonged downtrend that began in December of 2024.
Svenson points out that on both the four-hour and daily charts, a downtrend line is converging with an uptrend line, a pattern also mirrored by the Relative Strength Index (RSI) indicator. The RSI is a momentum oscillator used to assess oversold and overbought conditions.
“…we’re witnessing a breakthrough above horizontal resistance on the daily RSI alongside the long-term downward sloping resistance. Thus, we have a confirmed breakout on the daily RSI, which could serve as a leading indicator, signaling that Bitcoin might also experience a breakout shortly.”
Furthermore, Svenson notes that the Moving Average Convergence Divergence (MACD), a momentum-based technical indicator that helps identify trends and potential buy and sell signals, is also showing a bullish indication for Bitcoin.
“On the daily MACD, the bulls have the upper hand as we are currently resting on resistance. This provides grounds to believe we could see a breakout…”
The crypto analyst also mentions that Bitcoin has created a bullish ascending triangle pattern on the three-day chart, potentially leading to an increase of about 13% from its present level.
“To estimate your target for the measured move, subtract the low from the high of the [ascending triangle] pattern and apply that to the possible breakout zone… which yields quite a remarkable figure. I mean $98,000… it doesn’t seem too far-fetched since we experienced a significant drop. Essentially, we would just be reclaiming the ground lost during that steep downturn.”
“At this point, we might be looking at a U-shaped recovery, which is what it seems like we are setting up for now.”
Bitcoin is currently trading at $86,551 as of this writing.
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Disclaimer: Opinions expressed at The Daily Hodl do not constitute investment advice. Investors should conduct their own research before making any high-risk investments in Bitcoin, cryptocurrency, or digital assets. Please be aware that your transactions and trades are at your own risk, and any losses incurred are your responsibility. The Daily Hodl does not endorse the buying or selling of any cryptocurrencies or digital assets, nor does it act as an investment advisor. Additionally, The Daily Hodl participates in affiliate marketing.
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