Crypto analyst Kevin Svenson predicts that $Bitcoin (BTC.CC)$ could see an upsurge of up to 86%, potentially hitting the $100,000 mark.
What Happened: Svenson said that Bitcoin has formed a bullish divergence pattern on the daily chart. This pattern emerges when the asset's price is trading down or sideways, while an oscillator like the relative strength index (RSI) is in an uptrend, indicating increasing bullish momentum.
In a video post, Svenson said, "We got actually a slightly higher low in the RSI – you could also call it flat support, horizontal support. And upon that flat support, we had lower lows in price. That is a bullish divergence."
He also observed a broadening pattern in the Bitcoin chart, characterized by lower highs and even lower lows, which could be interpreted as a bullish continuation pattern if the asset breaks its diagonal resistance.
"And so what is happening on the Bitcoin chart? Well, what we see is a broadening pattern of sorts – lower highs but even lower lows," he added.
Svenson suggested that Bitcoin could surge by 60% from current levels if it rallies above the pattern's resistance at around $68,000. Using the Fibonacci extension tool, he outlined two other potential targets at $88,000 and $113,000, representing potential gains of 45% and 86%, respectively.
"Going from the low [of around $49,000] to the potential breakout zone [at around $68,000] and then you look for a target using that, that actually lands us towards $97,000. So that is the target of this pattern," Svenson said.
Regarding the timeline, Svenson warned, "Let's not get ahead of ourselves; it's going to take quite some time for this to play out fully. Price may actually end up, you know, squeezing into this range [between $49,000 and $70,000], chopping around for quite a while before getting the breakout. That breakout could take place in September."
Why It Matters: Svenson's prediction comes at a time when Bitcoin is experiencing significant volatility. The cryptocurrency's price has been fluctuating between highs and lows, with investors closely monitoring these patterns.
Svenson's bullish outlook could provide some optimism for those invested in Bitcoin, especially if his predictions of a breakout in September come to fruition.
However, as with any investment, it's crucial to approach with caution and consider the inherent risks involved in cryptocurrency trading.
