Crypto trader Kevin Swanson believes Bitcoin (BTC) will approach the $100,000 mark after this week’s market-wide collapse.
Swanson tells his 79,000 YouTube subscribers that Bitcoin has formed a bullish divergence pattern on the daily chart.
A bullish divergence occurs when the price of an asset falls or moves sideways while an oscillator, such as the momentum indicator relative strength index (RSI), is in an uptrend.
The signal suggests that the bullish momentum continues to increase.
Svenson says:
“We actually got a little bit higher low in the RSI – you can also call it flat support, horizontal support. And on that flat support, we had lower lows in price. That’s a bullish divergence.
So what’s going on in the Bitcoin chart? Well, what we’re seeing is sort of an expanding pattern — lower highs, but even lower lows.”
The expanding pattern is a technical formation that can be considered as a bullish continuation pattern if the asset manages to break through its diagonal resistance.
Swanson says Bitcoin could surge 60% from current levels if BTC breaks pattern resistance around $68,000.
“From a low level [of around $49,000] into the potential breakthrough zone [at around $68,000] and then you look for a target using that, which actually brings us to $97,000. So that’s the target of this template.”
At the time of writing, Bitcoin is trading at $60,555.
Using the Fibonacci extension tool, the analyst says the other two targets he has his sights on are $88,000 and $113,000, which would represent potential gains of 45% and 86%, respectively.
On when Bitcoin might reach its price targets, Swanson says:
“Let’s not get ahead of ourselves; it’s going to take quite a while for this to fully unfold. Price could end up, you know, squeezing into that range [between $49,000 and $70,000]”after a long time of fiddling around before getting a breakthrough. That breakthrough could happen in September.”
Generated image: Midjourney
