A cryptocurrency strategist and popular trader says a potential turnaround that could end a multi-month Bitcoin (BTC) downtrend is on the horizon.
Cryptocurrency analyst Kevin Svenson tells his 69,200 YouTube subscribers that Bitcoin is on the cusp of eliminating the country resistance that has kept the market bearish since November 2021.
“This is for the long term [downtrend line], from $69,000 all the way down on the linear scale, we are likely to be at the breakout point of the overall downtrend break on my line…but we also have the weekly RSI, which we are now on the verge of exiting. So Bitcoin has some potential upside pivots, likely [a] Turning upwards.”
The crypto analyst also says that in addition to taking out the diagonal resistance, Bitcoin is also printing a pattern that could indicate a bear market bottom is inside.
“Bitcoin was set up at what could be a double bottom… at the beginning of the year (May) when the price of Bitcoin dropped to around $33,000, we tested [$33,000]bounced up and basically wasn’t able to maintain that level and collapsed.
This is starting to look a little different. Instead of continuing lower, we went down to $17,500, climbed, found support around $18,500, created a slightly higher bottom, held that level and bounced back. So this looks a lot more promising than it used to be here (May 2022).”
Svenson says he is also keeping a close eye on Bitcoin’s weekly RSI, a momentum indicator that can signal trend reversals. According to the analyst, Bitcoin’s weekly RSI is in a position to break out of its downtrend that started since the beginning of 2021.
“Now we have a chance to break out of the weekly RSI downtrend and if we do that will at least put us in some sort of sideways range or maybe find some stability, get some time to build up and eventually look for a break above the overall trend line somewhere in 2023.”
At the time of writing, BTC was trading hands for $22,236, an increase of over 2% on the day.
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