A Crypto Analyst Believes Bitcoin is Set for a December Rally
An analyst named Kevin Svenson predicts that Bitcoin (BTC) will experience a bullish month in December, drawing parallels to its price action three years ago. Svenson notes that BTC’s current market structure and relative strength index (RSI) level closely resemble its setup in late 2020, when the cryptocurrency consolidated around $14,000 before a significant upward move. The RSI is a momentum indicator that indicates the continuation of a trend. Based on his charts, Svenson suggests that Bitcoin may undergo one more corrective move, causing the daily RSI to drop to the 50 level before the next rally begins.
Bitcoin Bulls Historically Show Strength in December
Svenson also highlights that Bitcoin bulls have historically demonstrated strength in the final month of a pre-halving year. The upcoming halving, expected to occur in April 2024, will reduce miners’ rewards by half. According to Svenson, the holiday season before a halving is typically bullish for Bitcoin. As of now, BTC is trading at $38,026 with a 1.33% increase in the last 24 hours.
Hot Take: Bitcoin Poised for a December Rally
Based on technical analysis and historical patterns, it seems that Bitcoin could be gearing up for a bullish December. Drawing comparisons to its price action three years ago, where it consolidated before making significant gains, analyst Kevin Svenson believes BTC may experience a similar trajectory this year. With the daily RSI potentially dropping to the 50 level before the next rally begins, there is anticipation for an upward move in the cryptocurrency’s price. Additionally, considering Bitcoin’s historical strength during December and the upcoming halving in April 2024, there are several factors aligning for a potentially positive month for Bitcoin.
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