According to analyst Kevin Svenson, Bitcoin might be closer to a new all-time high than many of us think. Right now, Bitcoin is trading about 20% below its March 2024 peak, but Svenson sees no reason for concern. If anything, this might just be part of the typical cycle we’ve seen time and time again.
Bitcoin’s Performance: Business as Usual
Svenson points out that the recent correction is nothing out of the ordinary. In fact, this kind of price action is pretty typical for Bitcoin. He explains, “We are still in the same long-term pattern which means that if this is an inverse head and shoulders and if we do have that recovery taking place moving forward, the target is also going to be based on the descending broadening wedge.”
The dips we’re experiencing aren’t unusual. Svenson reminds us that “people probably just have too much market exposure and too high expectations for life after this bull run. And because everyone has so much exposure, people panic, even though in previous cycles we saw corrections of 40%.” He points back to 2017, when Bitcoin went from $200 to $20,000, and several corrections happened along the way. So, if you’re feeling uneasy about the recent price action, you’re definitely not alone, but it’s also nothing new.
Bulls Regaining Control?
Svenson highlights some interesting chart signals that suggest Bitcoin might be gearing up for a stronger move. He mentions, “We have a higher low now in the short term that does give evidence to suggest the Bulls may be regaining a little bit more control which could then put us into a very, very strong consolidation before a recovery.”
Bitcoin has been moving between $74,000 and as low as $49,000 since March, and Svenson thinks the next push could see Bitcoin moving above $60,000. That’s not just speculation—it’s based on the patterns we’re seeing on the charts.
Timing for the Next All-Time High
One of the key points Svenson makes is about the timing. Historically, Bitcoin has taken 30 to 40 weeks after a halving to break above its previous all-time highs. Right now, we’re about 20 weeks in. He explains, “Currently, we are about 20 weeks or so in, so we’re early… around November or December… that is when we should be expecting Bitcoin to be trending with multiple weekly closes marching into new all-time highs.”
So, if Bitcoin’s history tells us anything, we might just be a couple of months away from seeing those all-time high prices again. But it’s important to remember that these moves don’t happen overnight.
Svenson’s Price Targets: Are They Realistic?
In his latest analysis, Svenson suggests that Bitcoin could hit anywhere between $89,000 and $92,000. He bases this on the broadening wedge pattern, noting, “From the highest point to the lowest point of the wedge… the target becomes something like 92,000… from the widest point of the wedge so far that target comes in at about 89,000.”
However, Svenson often relies heavily on technical analysis, and while it’s a powerful tool, it’s not the whole picture. Bitcoin’s price is influenced by many factors beyond the charts. So, while these targets are exciting, it’s wise to always take them with a pinch of caution.
You can watch the entire analysis in the video below:
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