A closely watched analyst believes that December will be a bullish month for Bitcoin (BTC) as the crypto king reflects a situation last seen exactly three years ago.
Kevin Svenson tells his 131,000 followers on social media platform
The trader shares two charts showing that BTC’s latest market structure and relative strength index (RSI) levels appear to be “strikingly similar” to the Q4 2020 setup.
The RSI is a momentum indicator that can signal the continuation of a trend.
Says Svenson,
“Bitcoin [Oct -> Nov] 2020/2023
Exactly three years ago, BTC found itself in a strikingly similar setup.
The 50 level on the daily RSI was the target for the next leg up.”
Looking at the trader’s charts, he seems to predict that Bitcoin will see another corrective move, which could see the daily RSI drop to the 50 level before the next rally begins.
Svenson also notes that Bitcoin bulls have historically risen during the last month of a year leading up to the halving.
The halving, which will see miners’ rewards halved, is expected to take place in April 2024.
Say the trader,
“The holidays before a halving are almost always bullish.”
At the time of writing, Bitcoin is trading at $38,026, up 1.33% in the past 24 hours.
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