Kevin Svenson, a noted crypto analyst with 72,500 subscribers on YouTube, has recently made waves with his prediction. He believes Bitcoin is on the cusp of a monumental surge, potentially reaching $90,000.
As of writing, Bitcoin has been consolidating between $50,500 to $53,000. The market participants await the breakout or breakdown to predict the future price trajectory of BTC.
Bitcoin Price Prediction: Is $90,000 Next?
Svenson’s theory is based on the analysis of a parabolic curve pattern. This anticipation, backed by historical data and global liquidity trends, suggests a significant upward trajectory for Bitcoin.
Delving deeper into his methodology, Svenson points out that Bitcoin is trading at the steeper portion of the parabolic trend, known as Base 3, which typically precedes a parabolic price rise. Drawing from historical data, he notes that after reaching Base 3, Bitcoin’s price has historically doubled.
Bitcoin’s price at the breakout from Base 3 was around $45,000, which forms the basis of his $90,000 target.
Moreover, Svenson’s analysis extends to calculating the surge ratio in each cycle to forecast the upcoming bull cycle’s peak. His calculations, which factor in a 500% surge from the 2022 bottom, point towards a peak of around $95,000 for the current cycle. Despite the two converging data points supporting his prediction, Svenson cautions his audience to consider these forecasts with a degree of skepticism, acknowledging the myriad of real-world factors that could influence market dynamics.
“I would take it with a grain of salt because it has a lot more to do with the world in reality, than a specific number,” Svenson said.
Despite a contraction in global liquidity, which typically hampers asset growth, Bitcoin is defying expectations. Its current rise highlights its unique position within the financial ecosystem. This deviation from traditional market dynamics underscores Bitcoin’s increasing independence. It is supported by institutional adoption and advances in blockchain technology.
The crypto ecosystem, however, is complex and filled with uncertainties. Factors such as regulatory challenges and declining Bitcoin dominance add hindrances to the $90,000 price target.
Read more: Bitcoin Price Prediction 2024/2025/2030
Additionally, a Bitcoin indicator signals potential speculative excess, which might lead to a market correction.
“When the implied yield basis is large relative to the underlying volatility, it can signify outsized levels of leverage and speculation,” Jeff Anderson, a senior trader at STS Digital, said.
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