Analyst and trader Kevin Svenson is leaning bullish on Bitcoin (BTC) as the flagship crypto asset continues to hover above the $100,000 price.
Svenson tells his 81,000 YouTube subscribers that based on the Moving Average Convergence/Divergence (MACD) indicator on the daily time frame, Bitcoin could surge higher over the short term.
According to the analyst, Bitcoin could go up by around six percent from the current price based on the Fibonacci extension levels – a tool used to determine potential price targets based on the Fibonacci sequence of numbers.
“I want to bring your attention to the daily MACD histograms. And what we can see is that we are attempting a cross-up – the bulls may be regaining momentum fully in the very near future…
… the bears have now lost their momentum and the bulls are regaining momentum. We are crossing up right now on the daily. So if we do get this cross-up and we close with a confirmed cross-up, I do think Bitcoin may be able to actually break this channel line, this resistance line and punch up towards the 1.618 Fibonacci [extension level]. $111,600 is the next major target.”
Svenson, however, says that Bitcoin “has a lot of room to move down” even amid a bullish trend.
“If you’re looking at this upward-sloping channel, in theory, Bitcoin’s price could come all the way down to $100,000 and still be in an uptrend. You can imagine if Bitcoin’s price… let’s say chopped sideways for a bit and then dipped to $100,000, people would be freaking out as they always do.
But you just look at the uptrend line – that is a perfect buy zone for Bitcoin that is a great support target and that would be a higher low in the midst of a major bull market. I think the outcome would end up being pretty positive regardless if we saw a slight dip to retest the channel line, the upward-sloping channel line. I think Bitcoin would do just fine from there and continue the bull run.”
Bitcoin is trading at $105,135 at time of writing.
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