Veteran cryptocurrency analyst Kevin Svenson shared his optimistic outlook on Bitcoin (BTC) in a recent video update, suggesting that the largest cryptocurrency could be on the verge of its third parabolic run this market cycle. The analyst expects the Bitcoin market to witness a major bull run.
Draws Parallels with 2017
To YouTube subscribers, Svenson drew parallels between Bitcoin's current price action and its performance in 2017. At that time, BTC experienced three different parabolic phases before reaching a significant bull market peak.
The analyst detailed the pattern observed in 2017, when Bitcoin's price saw multiple short-term parabolic trends. Each stage highlighted that the trend developed into a larger trend, which in turn developed into a larger trend, leading to a major vertical rise towards the end of the bull market. Svenson emphasized that by 2024, Bitcoin is positioned similarly to its 2017 performance. Svenson emphasized that for this pattern to repeat, the market needs a renewed sense of 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 has found support at around 45 on the weekly chart, a level that previously signaled the beginning of Bitcoin's second parabolic phase of the current cycle. This jump in the support level means that BTC may be entering a trend expansion zone.
Moreover, Svenson emphasized that the Moving Average Convergence Divergence (MACD) indicator, a trend-following momentum indicator, also points upward. He explained that the weekly MACD is showing signs that bearish momentum is waning and bullish momentum is increasing. Historically, such reversals in the MACD histogram have been associated with significant price gains for Bitcoin.
Svenson's analysis suggests that Bitcoin may be preparing for a major upward move mirroring its 2017 performance. Believing that technical indicators point to a bullish trend, the analyst noted that the RSI and MACD both indicate that the momentum has turned in favor of the bulls.
