Crypto analyst and trader Kevin Svenson suggested that Bitcoin (BTC) could be on the verge of a strong rally in the coming days and weeks. The analyst stated that if one condition is met, the largest cryptocurrency could rise to $60,000.
First Critical Level at $44,000 According to Analyst
Crypto analyst Svenson discussed Bitcoin with his YouTube channel subscribers. He claimed that if Bitcoin’s weekly candle closes above the resistance area around $44,000, it could indicate a more than 40% rise from the current level. The analyst stated the following:
If Bitcoin closes the weekly candle above the $44,000 resistance, it will tell us that the market is moving to an uptrend. It will be a sign that bulls are in control and we should be on the side expecting a rise.
So if my expectation is met and the price eventually rises towards the fuse above (around $49,000), whether it takes one week, two weeks, or three weeks, then all short positions will be trapped and will serve as liquidity. Because from that moment on, those who opened short positions will have no other option but to exit the market. In other words, the price rising above the fuse height will crush all short positions and leave traders with nowhere to go.
This will take us above $60,000. This scenario will occur with short positions being trapped.
Block Reward Halving as Another Factor Supporting the Rise
Svenson also mentioned factors like the block reward halving as supporting the upward trend in Bitcoin. He said, “If we can’t break the $49,000 resistance, then the scenario I’m expecting won’t happen, and it will become clear that the target level of my expectation is not the $49,000 level. If the scenario I foresee works out, it will probably give us a quick momentum because multiple factors playing a role create a lot of market inefficiencies in a rising trend market. The high demand for Bitcoin right now matches this situation,” and he added:
What I mean is, if the breakout I’m expecting around $49,000 happens, there are many factors that will support this big move. With the support of these factors, the price could quickly move to around $60,000.
However, the main factor I’m thinking of is the psychological factor. That is, many people want to invest before the block reward halving, which is also a significant signal for the rise. Anyone familiar with BTC, aware of the block reward halving, and following recent news will likely want to buy Bitcoin before the halving.
