Cryptocurrency analyst and dealer Kevin Svenson believes Bitcoin (BTC) might be on the cusp of a rally over the approaching days and weeks.
Svenson tells his 71,600 YouTube subscribers {that a} weekly Bitcoin shut above the resistance zone of round $44,000 opens up the potential of the flagship crypto asset rallying by a bit of over 40% from the present degree.
“If Bitcoin’s weekly closes above resistance this may give us an indication that the market is beginning to favor the bullish aspect, that the bulls have the management which provides us cause to have a bullish bias…
So if that does happen and the value is ready to run in the direction of this wick excessive [at close to $49,000] finally, whether or not that takes one week, two weeks, three weeks… if we rise up to that wick excessive and also you really get a break above that degree then all of the positions which are nonetheless brief are thought of trapped liquidity. As a result of they don’t have any selection anymore. The value is above the wick excessive, all of their positions are underwater and there’s nowhere else to go…
Which lands us at over $60,000 that’s the goal for this setup, this theoretical trapped liquidity setup for the bullish aspect.”
Svenson additionally says that a number of different elements favor a bullish bias for Bitcoin.
“If we don’t break $49,000, then the setup just isn’t actually there. If we’re in a position to do this, that’s doubtless going to provide us fast momentum as a result of it creates numerous market inefficiencies the place there’s a number of elements enjoying in. We’ve got the trending market, the upper lows, the excessive diploma of demand for Bitcoin proper now…
I imply there’s numerous elements that start to play into this main transfer that might happen on a break of $49,000. May simply land us up there [around $60,000].
However the different issue that I’m enthusiastic about too is a psychological issue, which is that most individuals are going to need to be invested earlier than the halving. Anyone that is aware of about Bitcoin, that is aware of in regards to the halving, that’s been watching the information not too long ago, they’re most likely going to need to purchase earlier than the halving.”
Bitcoin is buying and selling at $42,500 at time of writing.
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