Bitcoin Making a Major Trend Shift, According to Analyst
This crypto analyst is bullish on Bitcoin (BTC), declaring that the flagship cryptocurrency could be gearing up for significant gains.
Kevin Svenson told his Twitter followers that Bitcoin could hit $30,000 sooner than people expect.
After breaking out from a large falling wedge formation, which suggests a significant shift in trend, the largest cryptocurrency is well positioned.
The analyst points out that BTC is now shifting to a bullish trend, noting the daily relative strength index (RSI) is bouncing off the 70 level.
We’re bouncing off the overbought zone, the unthinkable. The bears never thought this was going to be possible. But it has happened before.
Svenson points out that Bitcoin also hovered in the overbought zone on the daily chart in late 2020 after taking out resistance at $20,000. This breakout eventually led to a rally above $60,000.
At that time, Bitcoin broke $20,000 for the first time and remained in the overbought zone for a while. Following this, the crypto gained more than 50%.
It went into overbought territory and stayed there for a 60% run. These things are possible.
As Bitcoin is now trading above the diagonal resistance of the falling wedge pattern, the analyst says that the asset is likely en route to $30,000 before any significant correction.
Svenson’s chart predicts a significant rally for BTC to around $50,000. This will follow a corrective move below $20,000.
#Bitcoin 🤔 pic.twitter.com/Abj7rhxhWz
— Kevin Svenson (@KevinSvenson_) February 5, 2023
READ MORE: The Biggest Risks Associated With Central Banks’ Digital Currencies (CBDCs)
What is the RSI?
The Relative Strength Index (RSI) is a technical indicator used to analyze financial markets. It is a momentum oscillator that measures the speed and change of price movements. The RSI is calculated using the following formula:
RSI = 100 – (100 / (1 + RS))
Where RS is an asset’s average gain over a given period divided by the average loss over the same number of periods.
Traders and investors often use the RSI to identify potential buying or selling opportunities in the market based on the price momentum of an asset. The RSI is typically plotted as a line chart with values ranging from 0 to 100. An RSI value of 70 or above indicates that an asset is becoming overbought or overvalued. In contrast, an RSI value of 30 or below shows that it is becoming oversold or undervalued. It is important to note that the RSI is a relative, rather than an absolute, indicator and can be influenced by changes in an asset’s price volatility.
Andrey Kunev
Reporter at CoinsPress
Andrey Kunev is a knowledgeable cryptocurrency content creator passionate about the crypto market. With extensive experience in market analysis and investment reporting, Andrey is a valuable asset to the CoinsPress team. As a frequent contributor, he offers insightful and comprehensive coverage of market trends, price fluctuations, and new advancements in cryptocurrency. Whether you're a seasoned investor or just getting started, Andrey's clear and concise writing offers a comprehensive look at the current state of the crypto market and its prospects. Stay up-to-date with CoinsPress's expert analysis and commentary on all things cryptocurrency.
