Analyst and trader Kevin Svenson says he is still bullish on Bitcoin (BTC) amid a correction that has seen the flagship crypto asset decline by around 23% from the all-time high recorded in January.
In a new strategy session, Svenson tells his 82,800 YouTube subscribers that two indicators, the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD), are signaling that Bitcoin is primed for more upside after a period of sideways trading.
The RSI indicator is a momentum oscillator used to determine oversold or overbought conditions. The MACD is used to analyze price trends and momentum direction in a bid to identify points to enter or exit positions.
“The MACD on the weekly is showing that the bears are losing momentum and we’re holding that RSI support on the weekly. Well, I’m going to be looking for general sideways price action. Could be higher highs, lower lows. But ultimately sideways before a recovery back to new all-time highs.
Yes, I’ll say it. I guess I’ll be the only one to say it… that I’m still expecting new all-time highs in this cycle. Nothing’s changed in that perspective.”
Svenson, however, says that even though Bitcoin is showing signs of bottoming out, the crypto king is “not totally out of the woods just yet” and could head lower before rallying.
“There is a possibility that at some point the market does a final flush before actually recovering. I mean, Bitcoin plays out that type of wacky price action all the time…
…if we were to play out kind of like a final flush into a slightly lower low, this scenario wouldn’t surprise me – testing down to the low $70,000s one more time first, going into the $90,000 range first and then flushing before a full recovery.”
Bitcoin is trading at $83,586 at time of writing.
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