Analyst Kevin Svenson Warns of Potential Bitcoin Correction
Analyst and trader Kevin Svenson is cautioning Bitcoin (BTC) investors as the cryptocurrency approaches its all-time high price. Svenson, with a YouTube following of 73,100 subscribers, predicts that Bitcoin could experience a significant correction shortly after reaching a new record high.
The Path of Most Pain
Svenson explains in a recent video that the most likely scenario is for Bitcoin to surge to a new all-time high and then undergo a sharp decline. He suggests that this path would cause the most pain for investors who missed out on buying Bitcoin earlier and are now experiencing FOMO (fear of missing out).
“The path of most pain is the most likely. And right now the most painful route to take would be to give no second chances, punch up to a major new all-time high zone. And then once everybody that wasn’t in, that was sidelined FOMOs into the new all-time high because they think we’re going to go straight up, then send the price down back below the all-time high…”
FOMO and Bitcoin’s Potential Surge
FOMO refers to the fear of missing out, which can lead investors and traders to make impulsive decisions based on an asset’s rising price. Svenson believes that Bitcoin has the potential to surge by approximately 26% before reversing.
“It’s very likely that we’re going to break the all-time high. And if we do, I would expect a swift move up to something like $84,000. And then once all the newcomers FOMO in the next all-time high, shake them back out but right below the all-time high. And then punch it again for the major major run of this cycle going into 2025. Something along these lines is what I would think is likely.”
Potential Bitcoin Price Drop
As of writing, Bitcoin is trading at $66,574. Based on Svenson’s chart, he suggests that Bitcoin could drop to around $54,500 before resuming its upward trend.
Hot Take: Prepare for a Massive Shakeout
In conclusion, Kevin Svenson warns of a potential correction in the price of Bitcoin as it approaches its all-time high. He predicts that the most likely scenario is for Bitcoin to surge to a new record high before experiencing a sharp decline. This path would cause pain for investors who missed out on buying Bitcoin earlier and are now experiencing FOMO. Svenson suggests that Bitcoin could surge by approximately 26% before reversing and potentially dropping to around $54,500. It’s important for investors to be prepared for these potential market movements and make informed decisions based on their risk tolerance and investment goals.
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