- Cryptocurrency analyst Kevin Svenson suggests that Bitcoin (BTC) has minimized further downside risks.
- Svenson recently informed his 78,700 YouTube followers about Bitcoin potentially stabilizing after hitting a low.
- “We probably found the low, and momentum now appears to favor the bulls,” Svenson remarked.
Can Bitcoin recover? Cryptocurrency analyst Kevin Svenson weighs in on the minimal downside risk and the bullish momentum in the current market.
Bitcoin’s Minimal Downside Risk, According to Analyst Svenson
Kevin Svenson, a well-known cryptocurrency analyst, has indicated that the risk of Bitcoin (BTC) further declining is now minimal. After Bitcoin touched a five-month low of $53,563 last week, the analyst claims that the digital asset has likely bottomed out.
Promises of a Sideways Recovery and New Highs
Svenson elaborated on the potential trajectory of Bitcoin, suggesting that we might witness a sideways recovery followed by a new all-time high. “This could take months, but it seems the bulls hold long-term momentum,” he stated. At the time of his latest analysis, Bitcoin was trading at $58,520.
Indicators Suggest Bullish Momentum
The analyst emphasized the presence of a bullish divergence on the daily charts, particularly on the Relative Strength Index (RSI) and the Moving Average Convergence/Divergence (MACD) indicators. Bullish divergence indicates a potential reversal in price trends to the upside, occurring when the asset’s price hits lower lows, but the indicators mark higher lows. Svenson pointed out that these signals often appear when market sentiment is at its lowest, ironically when pessimism peaks.
RSI and Oversold Territory
Additionally, Svenson highlighted that Bitcoin’s RSI suggests the cryptocurrency is currently in oversold territory, which can be another bullish indicator. He commented that reaching an oversold level typically precedes a breakout, noting that while it can take weeks or even months, historically, it leads to a price rebound.
Conclusion
In conclusion, Kevin Svenson’s analysis shows that Bitcoin may have already experienced its low and is poised for potential growth. With RSI and MACD indicators hinting at bullish momentum, and market sentiment at an extreme low, the groundwork is laid for a possible upward trend. Investors should stay informed and watch for further market developments as Bitcoin treads toward recovery.
