Bitcoin Analyst Kevin Svenson Predicts Volatility Surge After $90,000
Cryptocurrency analyst Kevin Svenson is offering his insights on the future of Bitcoin (BTC) in the coming weeks and months. In a recent video, Svenson informs his 73,700 YouTube subscribers that if Bitcoin experiences a surge of nearly 40% from its current level, higher levels of volatility will follow.
The Parabolic Curve Pattern and Volatility
Svenson explains that once Bitcoin confirms the fourth stage of the parabolic curve pattern on the weekly chart, volatility levels will increase. The parabolic curve pattern in technical analysis consists of four stages, with the fourth phase being the launching pad for a breakout towards a higher level. This higher level is commonly referred to as the “sell point” or the area where a major correction begins.
Svenson states that the recent touch at base four is an indication that Bitcoin is now searching for its final extension up to the sell point. According to textbook analysis, this sell point is estimated to be around $90,000. However, Svenson warns viewers that if they were scared by Bitcoin’s recent dip from its all-time high of over $73,000 to under $63,000 earlier this month, they are not prepared for what lies ahead. He predicts much larger swings in price as Bitcoin continues to surge.
Potential Volatility Similar to 2017
Svenson also speculates on what could happen if volatility levels reach those experienced during the 2017 bull run. If Bitcoin reaches $90,000 and then experiences a classic 2017-style dip of around 40%, with subsequent consolidations and runs into six-figure territory before ultimately breaking down from the parabolic trend, portfolios could see a drop of 50%.
It’s important to note that at the time of writing, Bitcoin is currently trading at $63,987.
Hot Take: Brace Yourself for Increased Volatility
According to Kevin Svenson, Bitcoin is on the verge of a significant surge that could push its price up to $90,000. However, with this surge comes a warning – brace yourself for increased volatility. Svenson predicts that if Bitcoin experiences a 40% dip from its peak, similar to what happened in 2017, portfolios could be cut in half. It’s crucial for investors to prepare themselves mentally and financially for these potential swings in the market.
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