Cryptocurrency analyst Kevin Svenson is turning bullish on Bitcoin (BTC) as the flagship trades at over 20% below the all-time high reached in March.
Svenson tells his 79,200 YouTube subscribers in a new video that Bitcoin is “likely just a couple of months away from a new all-time high.”
According to the analyst, the correction that Bitcoin keeps experiencing happens in all cycles and the current one is not an exception.
“People may just be heavily overexposed to the market, having grand expectations to be set for life after this bull run. And because everyone is so overexposed all the hardcore crypto people every time there’s a dip, there’s a big concern even though in past cycles, 40% dips that happened multiple times in 2017 on the way from $200 to $20,000.”
The analyst says that Bitcoin is forming a descending broadening wedge, a pattern typically considered a bullish signal, on the daily time frame. According to Svenson, Bitcoin could surge by up to 63% from the current level if the descending broadening wedge pattern plays out the way he has foreseen it.
“The descending broadening wedge… well, it’s still here. It’s still in play, nothing has changed…
if we do have that recovery taking place moving forward, the target is also going to be based on the descending broadening wedge. There are multiple ways to get a target for a descending broadening wedge measuring from the top to the bottom of the pattern and also measuring from the widest point of the wedge and getting your target that way.
Now from the highest point to the lowest point of the wedge… …the target becomes something like $92,000 roughly. From the widest point of the wedge so far, that target comes in at about $89,000. So anywhere from $89,000 to $92,000 is the collective target you know using both of these methods.”
Bitcoin is trading at $56,532 at time of writing.
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