A closely followed crypto strategist believes that Bitcoin (BTC) could now be in the midst of a consolidative period to set the stage for a parabolic rally.
In a new video, analyst Kevin Svenson tells his 124,200 Twitter followers that BTC may be in the process of building a base of buyers before printing gains of over 100%.
According to Svenson, Bitcoin appears to be following the parabolic diagram after creating two bases of support. Traditionally, a parabolic asset creates three bases of support before launching a 2x rally in a short amount of time.
Says Svenson,
“Bitcoin, from $15,500 at the beginning of the year to where we are now currently at [$28,000]. Bitcoin has created two bases of support, and possibly we’re about to create base three. Why is that important?
If you look at the parabolic diagram, it suggests after three bases of support were created within the parabola, the stock price then doubles, or in this case, the crypto price doubles after base three. This means we have a possible base being created around $30,000 and then double to $60,000, according to the textbook.”
The analyst also says that Bitcoin looks strong as it continues to respect both its diagonal trendline and horizontal support on the four-hour chart.
“Bitcoin – maintaining an aggressive bullish posture.”
At time of writing, Bitcoin is trading for $28,114.
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