Cryptocurrency analyst Kevin Svenson is forecasting the path forward for Bitcoin (BTC) over the coming weeks and months.
In a new video, Svenson tells his 73,700 YouTube subscribers that higher levels of volatility will ensue if and when Bitcoin surges by nearly 40% from the current level.
According to Svenson, once Bitcoin confirms the fourth stage of the parabolic curve pattern on the weekly chart, the levels of volatility will rise.
In technical analysis, a parabolic curve pattern has four stages with the fourth phase becoming the launching pad for a breakout towards a higher level that is typically known as the “sell point” or an area where a major correction begins.
Says Svenson,
“What we just saw here was the touch for base four. If we do in fact hit another high, that would be confirmed as base four. We can’t confirm base four until we break out again for the next leg up…
This means that Bitcoin is now looking for that final extension up to the sell point where the chart basically goes fully vertical. Fully vertical up to base four, which according to the textbook is $90,000…
I went into very deep detail about what I think is going to happen after we hit $90,000. If this dip for Bitcoin [from the all-time high of over $73,000 to under $63,000 earlier this month] scared you, you’re not ready for what’s coming next because you’re going to see much, much bigger swings.”
Source: Kevin Svenson/YouTube
On what to expect if the volatility levels reach the magnitude experienced in 2017, Svenson says,
“And so if we go to $90,000 and we get a classic 2017 40% dip from $90,000, a punch up to $90,000, a pullback to maybe into the $50,000s, consolidate, run up again into the six figures, a classic 2017 break down of the parabolic trend that then becomes a larger trend, well during that moment your portfolio would drop in half.”
Bitcoin is trading at $63,987 at time of writing.
Generated Image: DALLE3
