A closely tracked crypto strategist who continues to build his following with timely Bitcoin (BTC) calls says the leading digital asset could be gearing up for a significant rally.
Crypto analyst Kevin Svenson tells his 110,200 Twitter followers that he’s looking at Bitcoin’s moving average convergence divergence (MACD) indicator on the three-day chart which suggests that BTC is likely setting up for a sustained bounce.
Traders rely on the MACD to spot either trend reversals or continuations.
“Bitcoin three-day MACD cross will likely lead to continuation up. The three-day candle closes tonight. We’re very likely going to confirm the cross soon.”
As for Bitcoin’s short-term market structure, Svenson says that BTC is flashing a “textbook” Adam and Eve double bottom pattern.
#Bitcoin Adam & Eve is very clear.
Looks like it's straight out of a textbook.
This is a bullish reversal pattern. pic.twitter.com/kdAnDOpZfV
— Kevin Svenson (@KevinSvenson_) July 7, 2022
Looking at lower timeframes, Svenson says that BTC might be trading within a bullish pennant pattern with support around $21,400.
“BTC testing the bottom of the formation. Needs to hold this area to maintain structure.”
Although Svenson appears bullish on BTC, he reminds his followers that Bitcoin is still in a long-term bear market.
“‘The trend is your friend until the end of the trend.’
The short term trend is up with some momentum.
The long-term trend is down. Deep in bear territory
In the short to medium term, I’m playing this bullish but being cautious about a macro lower high dump later on.”
At time of writing, Bitcoin is changing hands at $21,455.
Featured Image: Shutterstock/MoVille
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