Cryptocurrency analyst and trader Kevin Svenson believes Bitcoin (BTC) could be on the cusp of a rally over the coming days and weeks.
Svenson tells his 71,600 YouTube subscribers that a weekly Bitcoin close above the resistance zone of around $44,000 opens up the possibility of the flagship crypto asset rallying by a little over 40% from the current level.
“If Bitcoin’s weekly closes above resistance this would give us a sign that the market is starting to favor the bullish side, that the bulls have the control which gives us reason to have a bullish bias…
So if that does occur and the price is able to run towards this wick high [at close to $49,000] eventually, whether that takes one week, two weeks, three weeks… if we get up to that wick high and you actually get a break above that level then all the positions that are still short are considered trapped liquidity. Because they have no choice anymore. The price is above the wick high, all of their positions are underwater and there is nowhere else to go…
Which lands us at over $60,000 that is the target for this setup, this theoretical trapped liquidity setup for the bullish side.”
Svenson also says that several other factors favor a bullish bias for Bitcoin.
“If we don’t break $49,000, then the setup is not really there. If we are able to do that, that’s likely going to give us quick momentum because it creates a lot of market inefficiencies where there’s multiple factors playing in. We have the trending market, the higher lows, the high degree of demand for Bitcoin right now…
I mean there’s a lot of factors that begin to play into this major move that could take place on a break of $49,000. Could easily land us up there [around $60,000].
But the other factor that I’m thinking about too is a psychological factor, which is that most people are going to want to be invested before the halving. Anybody that knows about Bitcoin, that knows about the halving, that’s been watching the news recently, they’re probably going to want to buy before the halving.”
Bitcoin is trading at $42,500 at time of writing.
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