Bitcoin traders are closely monitoring the cryptocurrency’s price action as key technical indicators are signaling the potential for a bullish trend shift.
Prominent trader Kevin Svenson recently shared his analysis, revealing that Bitcoin’s Relative Strength Index (RSI) indicator has confirmed a bullish breakout after last week’s candle close. This signal has caught the attention of many in the crypto space, suggesting that Bitcoin may be on the brink of a major price move.
RSI Breakout: A Strong Bullish Signal
The RSI is a widely used momentum indicator in technical analysis that helps traders identify overbought or oversold conditions, as well as potential reversal points. According to Svenson, the confirmed breakout of Bitcoin’s RSI on the weekly chart is a significant signal of a potential shift in market sentiment.
Svenson emphasized that previous instances of confirmed weekly RSI breakouts have proven to be among the most reliable indicators for macro breakout trends. With this signal now in play, the trader believes Bitcoin is primed for a bullish trend shift, as market dynamics are beginning to change.
A Market Shift: Demand Outpacing Supply
Svenson noted that the market dynamics are shifting in favor of bulls, with demand now outpacing supply. Despite the market still offering massive discounts, he believes this current bearish trend is on the verge of reversing.
“One thing is certain: nothing lasts forever. This bearish trend will reverse into a bullish one. The real question is … are you ready for it?” Svenson asked, highlighting the importance of being prepared for the potential shift in market direction.
Three-Day Chart: RSI and MACD Indicators Point to Higher Prices
Zooming in on the three-day chart, Svenson also pointed to Bitcoin’s RSI and Moving Average Convergence Divergence (MACD) indicators as additional signs of higher prices ahead. The MACD is a trend-following indicator that helps traders identify potential entry and exit points based on changes in momentum and trend direction.
With both the RSI and MACD signaling bullish potential, Svenson described the current setup as “pretty decent” for a bullish trend pivot, indicating that a positive price move may be on the horizon for Bitcoin in the coming days.
However, as Svenson reminds us, the key question is whether traders are ready to act as the market dynamics shift from bearish to bullish.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/bitcoin-bulls-eye-a-trend-reversal-says-trader-kevin-svenson/