- Bitcoin is on the verge of a potential third parabolic run this financial cycle.
- Market analysts draw parallels to Bitcoin’s noteworthy performance in 2017.
- Technician Kevin Svenson highlights key technical indicators suggesting increased bullish momentum.
Bitcoin might be preparing for another significant upward surge, echoing patterns from its historic 2017 run. Discover the key indicators driving this optimism among BTC traders.
Bitcoin’s Potential for a Parabolic Surge in 2024
Renowned crypto analyst Kevin Svenson recently updated his 78,700 YouTube followers with insights suggesting that Bitcoin (BTC) may be setting up for another parabolic growth phase. Svenson compared the current market conditions to those of 2017 when Bitcoin experienced multiple parabolic trends before culminating in a major market peak.
Mirroring 2017’s Price Action
In his analysis, Svenson noted that, during 2017, Bitcoin went through several shorter-term parabolic phases, each larger than the last, before achieving a substantial vertical ascent. According to Svenson, Bitcoin in 2024 is exhibiting similar tendencies. “Right now in 2024, we’re sitting in the same position. There’s no reason why this couldn’t happen. What we need is just a renewed sense of optimism, and we need to regain momentum,” explained Svenson.
Technical Indicators Signal Growing Bullish Sentiment
Svenson pointed to Bitcoin’s relative strength index (RSI), a critical momentum indicator, which has found support at a level indicative of the start of previous parabolic phases. He elaborated that Bitcoin’s RSI has bounced back off the 45 level on the weekly chart, which historically precedes significant price expansions. “If you look at the beginning of 2023 when we had that initial part of the parabola with a breakdown, we found support right around the 45 level on the weekly RSI, and we just bounced off that level again,” he said.
RSI and MACD Indicators
In addition to the RSI, Svenson highlighted Bitcoin’s moving average convergence divergence (MACD) metric as another strong indicator of potential bullish momentum. The MACD, which measures trend changes, shows declining bearish momentum and increasing bullish signals on a weekly scale. “The weekly MACD right now is starting to show that bearish momentum is decreasing, that bullish momentum is starting to pick up. If that is the case, when we have these weekly MACD histogram turnarounds, that’s normally where the price is getting tremendous speed,” Svenson detailed.
Current Market Performance and Future Outlook
As of the time of writing, Bitcoin is trading at approximately $65,469, reflecting a 15% increase over the past week. This upward trend has bolstered confidence among traders and analysts, suggesting that Bitcoin could indeed be on the brink of a major price run akin to its 2017 performance.
Conclusion
In summary, technical indicators and current market trends indicate that Bitcoin might be gearing up for another significant parabolic rise. Analysts like Kevin Svenson believe that, with renewed investor optimism and bullish technical signals, 2024 could see Bitcoin executing another substantial upward trajectory reminiscent of 2017. Investors and traders should stay vigilant and consider these insights when making decisions in the volatile crypto markets.
