Crypto trader Kevin Svenson is optimistic about Bitcoin’s future, as the leading digital currency recently touched a three-month high.
In a video released yesterday, Svenson shared his bullish outlook with his over 70,000 YouTube followers, stating that Bitcoin could see a dramatic price increase if it successfully turns a crucial resistance level into a support level.
Svenson emphasized that while the 21-week Exponential Moving Average (EMA) is commonly considered a reliable indicator, the 128-day SMA is an even more accurate gauge for Bitcoin’s long-term trends.
Sevenson pointed out that the 128-day SMA has been a consistent indicator of Bitcoin’s performance across various market cycles, including bull and bear markets, from 2013 to 2023. He noted that Bitcoin has recently broken above this moving average and is maintaining its price above it, signaling a potentially bullish trend for the cryptocurrency.
Sevenson also touched on a recent event where a crypto news outlet falsely reported that BlackRock’s spot Bitcoin ETF had been approved by the U.S. SEC. This led to a significant price spike and liquidation of short positions. Interestingly, even after the news was debunked, Bitcoin managed to sustain its elevated price levels. Sevenson interprets this as a sign that the market had not yet priced in the potential approval of a Bitcoin ETF, suggesting that Bitcoin could be undervalued in anticipation of such an event.
Svenson believes that if Bitcoin manages to sustain a price above $32,000 and establishes it as a new support level, the cryptocurrency could experience a surge of approximately 130% from its present value. He suggests that this would set the stage for Bitcoin to approach its all-time high, which is just above $69,000.
The trader also anticipates that Bitcoin’s price volatility will escalate once it surpasses the $32,000 resistance level. He explains that the price swings within the $32,000 to $70,000 range are likely to intensify. Even if Bitcoin doesn’t immediately reach its all-time high, Svenson expects heightened volatility once the $32,000 level is confirmed as support.
In his analysis, Svenson goes further to speculate that Bitcoin’s price could even exceed $70,000 in the years to come. He identifies the potential approval of a spot Bitcoin ETF as a significant catalyst that could propel Bitcoin’s price above the $32,000 mark. Svenson warns that people should be prepared for surprises, as Bitcoin has a history of defying expectations, especially after periods of sideways movement.