According to cryptocurrency expert Kevin Svenson, significant technical signals may indicate a near-term upward movement for Bitcoin
$
84,941. Svenson highlights the recent extended downtrend and suggests that a potential reversal point could be forming in the market. Signals from indicators like the RSI and MACD create an optimistic outlook for traders.
Strengthened Technical Outlook with RSI and MACD
Svenson points out that the convergence of descending and ascending trend lines on the four-hour and daily charts is noteworthy. This convergence is often interpreted as a signal for a directional shift in technical analysis. Particularly, a horizontal resistance breakout in the RSI could serve as a critical technical threshold, as such breakouts have historically preceded significant price movements. The MACD indicator on the daily timeframe presents a similar picture. Svenson notes that momentum appears to be shifting in favor of the bulls, especially as buyers gain strength just above the resistance level. This situation suggests a potential upward breakout from a technical perspective. An upward momentum shift in the MACD typically indicates a resurgence of market activity, hinting at the possibility of a larger movement.
Rising Triangle Formation and Possible Target
Another crucial technical detail noted by the analyst is the rising triangle formation observed on the three-day charts. This structure often lays the groundwork for upward price breakouts in technical analysis. Svenson mentions that this formation supports an approximate 13% price increase for Bitcoin, currently positioned around $86,551, with a target level of $98,000 emerging. Rising triangle formations have historically signaled recovery after downturns. According to Svenson, such formations may play a critical role in regaining lost value. This technical analysis-based approach is regarded as a powerful tool among traders, especially in shaping short- and medium-term expectations. Yet, Svenson emphasizes the need to acknowledge the uncertainties within the market despite these positive signals. He reminds traders that market psychology and external factors are also influential, advocating for caution. He underlines that technical analyses, especially during volatile periods, should be supportive but not solely relied upon.
