Well-known crypto analyst and strategist Kevin Svenson is of the belief that Bitcoin (BTC) is exhibiting a parabolic price movement, and in light of this model, he expects it to ascend. As Bitcoin prepares for its first negative monthly close of the year, Svenson notes bullish signals on the daily price chart of the largest cryptocurrency by market cap.
The MACD Crossover Could Trigger a New Rally in Bitcoin, Says Analyst
In a new YouTube video, crypto analyst and strategist Kevin Svenson mentioned that the Moving Average Convergence / Divergence (MACD) indicator has crossed over on Bitcoin’s daily chart. For those unaware, the MACD is a momentum indicator used by investors to track and identify potential trend reversals. According to Svenson, the last two times the MACD showed an upward trend on the daily chart, Bitcoin sparked a sharp rally, and a similar scenario could occur:
These daily MACD crossovers can sometimes merely mark the beginning of a much larger movement. We saw this at the start of March, with a 45% rally immediately following the daily MACD crossover and again earlier this year when the crossover happened. We rose from roughly $16,000 to $20,000, $23,000, and above $24,000. So, these daily MACD crossovers have triggered quite substantial movements this year.
According to the Parabolic Curve Model, the Target for BTC is Over $48,000
Svenson then discussed his target level for Bitcoin, considering the potential model the largest cryptocurrency follows. He believes that Bitcoin will sustain its uptrend by adhering to the parabolic curve model and climb above $48,000:
We are currently completing our third base. Our first base is complete, our second base is complete, and now we’re on our third base. And the third base is just about to complete right on the edge of the parabolic curve. For Bitcoin to maintain the parabolic curve model, it needs to bounce from here. What this model suggests is that the next move will take us above $48,000.
