dailyhodl.com
Analyst and trader Kevin Svenson is saying that an indicator that has reliably foreshadowed Bitcoin (BTC) uptrends just flashed for the crypto king.
In a new video, Svenson tells his 78,900 YouTube subscribers that the Relative Strength Index (RSI) indicator is exhibiting a pattern on the daily chart that has previously led to a major upward move for Bitcoin.
The RSI indicator is a momentum oscillator that’s used to determine whether an asset is oversold or overbought.
“Most of the time when we break out of this daily RSI downtrend, the RSI comes back, hits it as new support and what happens after that? A major move up…
…at the very least, it signals that there is some kind of move-up coming
And right now, we are at the retest zone of this RSI downtrend so if we bounce off this RSI previous resistance as new support… That signals another major move up. Or at least some kind of move up, at least towards the resistance. Or a breakout into new all-time highs.”
According to Svenson, Bitcoin’s current price action is a continuation of a pattern that was established in early 2023 when BTC trended sideways for months multiple times before witnessing an explosion.
“These long sideways ranges… Bitcoin’s at a higher market cap now, it may just take a little bit more time for the price to move. But I am still bullish, I’m remaining bullish.”
On when Bitcoin could hit a bull market top, Svenson says,
“On average after the halving, anywhere from 40 to 80 weeks [is when Bitcoin reaches its new top]…
We’re only 13 or 14 weeks post-halving. So in theory we have at least another 25 weeks to go, which is January, before we could reach the 40th week… The 80th week has the highest hit rate of being the top.
So however that plays out, you never know exactly what’s going to happen. But 40 to 80 weeks… you have another half year to hit the 40th week zone.”
Bitcoin is trading at $61,284 at time of writing.
Generated Image: Flux