Crypto Analyst Predicts Bitcoin Could Soon Surpass $40,000
If you look at the charts, you’ll see that the famed cryptocurrency analyst Kevin Svenson has pointed out that the price of Bitcoin is following a similar trend to what happened three years ago, which could signal an upcoming surge that sees it surpass $40,000. Svenson noted that Bitcoin seems to have a “strikingly similar setup” to what happened three years ago when the Relative Strength Index (RSI) indicated a target before the next bullish move.
Understanding the RSI and its Role
The Relative Strength Index (RSI), an indicator used to measure the “magnitude of recent price changes to evaluate overbought or oversold conditions in the price of a stock or other asset,” can have a reading between 0 and 100. Values above 70 suggest an asset is becoming overbought, while those below 30 indicate it’s oversold.
Bitcoin’s Historical Patterns and Upcoming Events
According to Svenson’s analysis, Bitcoin’s daily RSI could drop to the 50 level before another price surge ensues, as historical data suggests active periods in the final month of a pre-halving year. The next halving event, set for April 2024, has sparked major price predictions. Standard Chartered, for example, predicts Bitcoin to surpass $100,000 by the end of next year.
Hot Take
Keep an eye on the charts and Bitcoin’s historical patterns, as the flagship cryptocurrency could be gearing up for a substantial surge, potentially surpassing $40,000 in the near future.
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