A popular crypto strategist and trader says a potential shift that could end Bitcoin’s (BTC) multi-month downtrend is on the horizon.
Crypto analyst Kevin Svenson tells his 69,200 YouTube subscribers that Bitcoin is on the verge of taking out its diagonal resistance that has kept the market bearish since November 2021.
“This long-term [downtrend line], from $69,000 all the way down on the linear scale, we’re potentially at breakout point to break the macro downtrend on linear… But also we have the weekly RSI, which we’re currently about to break out of. So Bitcoin has some potential bullish pivots coming, potentially [a] bullish trend shift.”
The crypto analyst also says that in addition to taking out its diagonal resistance, Bitcoin is also printing a pattern that could indicate that the bear market bottom is in.
“Bitcoin is set up in what could be a double bottom… At the beginning of the year (May) when Bitcoin came down to about $33,000, we tested [$33,000], bounced up and basically weren’t able to hold that level and broke down.
This is starting to look a little bit different. Instead of being continuation down, well we came down to $17,500, rallied up, found support around $18,500, created a slightly higher low, held that level and bounced. So this is looking a lot more promising than it did back here (May 2022).”
Svenson says he’s also keeping a close watch on Bitcoin’s weekly RSI, which is a momentum indicator that could signal trend reversals. According to the analyst, Bitcoin’s weekly RSI is in a position to break out from its downtrend that started all the way back at the beginning of 2021.
“We have a shot now at breaking out of the weekly RSI downtrend, and if we do, that’s going to at least put us in some sort of sideways range or maybe we find some stability, get some time to accumulate and then ultimately look for a breakout above the macro trendline somewhere over in 2023.”
At time of writing, BTC is swapping hands for $22,236, up over 2% on the day.
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