Crypto investors closely follow cryptocurrency analyst Kevin Svenson, who shared his latest Bitcoin (BTC) analysis. The analyst believes December will be a bullish month for Bitcoin, as the leading cryptocurrency currently mirrors its pattern from three years ago.
Bitcoin Chart’s Striking 2020 Similarity
Crypto analyst Kevin Svenson, on his social media platform X account (formerly known as Twitter), pointed out to his followers that Bitcoin seems to be mimicking its 2020 end-of-year price action, where it consolidated around $14,000 before a significant upward move.
The analyst shared two charts showing BTC’s recent market structure and the Relative Strength Index (RSI) indicator’s resemblance to the setup in the fourth quarter of 2020. The RSI is a critical momentum indicator that can signal the continuation of a trend. Svenson commented on Bitcoin’s outlook:
“Bitcoin’s appearance in 2020 is quite similar to 2023. Exactly three years ago, BTC was strikingly similar. The daily RSI’s 50 level was the target before the next rise.”
Looking at Svenson’s shared price charts, it appears Bitcoin might pull back to allow the daily RSI to drop to the 50 level before the next rally starts.
Block Reward Halving Rally on the Horizon
Furthermore, Svenson added that historically, Bitcoin bulls have tended to push the price up during the final month of the year ahead of a block reward halving event. The next block reward halving is expected to occur in April 2024, indicating the upcoming month could be bullish for the largest cryptocurrency.
In his comments on the situation, the analyst stated, “The holiday season before the block reward halving has almost always been a bullish period when the price increased.”
BTC has risen 2.31% over the past 24 hours, trading above $38,000 at $38,182. Current data reveals that the largest cryptocurrency’s price has increased by 4.19% over the past 7 days and 11.18% over the past 30 days.
- Analyst predicts bullish December for Bitcoin.
- 2020 Bitcoin patterns suggest upcoming rally.
- Block reward halving could drive price surge.