Experienced cryptocurrency analyst Kevin Svenson shared his optimistic outlook on Bitcoin (BTC) in a recent video update, suggesting that the largest cryptocurrency might be on the verge of its third parabolic run in this market cycle. The analyst expects the Bitcoin market to witness a major bull run.
Drawing Parallels with 2017
Svenson drew parallels between Bitcoin’s current price action and its performance in 2017 to his YouTube subscribers. During that period, BTC experienced three distinct parabolic phases before reaching a significant bull market peak.
The analyst detailed the model observed in 2017, where Bitcoin’s price saw multiple short-term parabolic trends. Each phase transformed into a larger trend, leading to a significant vertical rise towards the end of the bull market. Svenson emphasized that as of 2024, Bitcoin is positioned similarly to its 2017 performance. He highlighted that for this model to repeat, the market needs renewed optimism and momentum.
Technical Indicators Reinforce Bullish Outlook
According to Svenson, technical indicators are aligning to support this bullish outlook. He specifically pointed to Bitcoin’s Relative Strength Index (RSI), a momentum indicator. He noted that the RSI found support around the 45 level on the weekly chart, a level that previously marked the beginning of Bitcoin’s second parabolic phase in the current cycle. This bounce at the support level suggests that BTC might be entering a trend expansion zone.
Furthermore, Svenson highlighted that the Moving Average Convergence Divergence (MACD), another trend-following momentum indicator, also signals a bullish trend. He explained that the weekly MACD shows signs of decreasing bearish momentum and increasing bullish momentum. Historically, such reversals in the MACD histogram have been associated with significant price increases for Bitcoin.
Svenson’s analysis suggests that Bitcoin might be preparing for a significant bullish move, mirroring its 2017 performance. The analyst believes that technical indicators point towards a bullish trend, with both RSI and MACD indicating that momentum is shifting in favor of the bulls.
