Bitcoin Set for Surge and Extreme Turbulence, Analyst Predicts

Cryptocurrency analyst Kevin Svenson predicts increased volatility for Bitcoin (BTC) as it approaches potential breakout levels, indicating a parabolic curve pattern on the weekly chart. According to Svenson, a 40% surge from current levels will confirm the fourth stage of the pattern, triggering a "sell point" or major correction area around $90,000. He cautions that volatility could reach 2017 levels, potentially leading to significant portfolio losses during a downward trend.

Bitcoin Poised for Surge and Heightened Volatility, Analyst Predicts

Prominent cryptocurrency analyst Kevin Svenson has provided a detailed forecast for the trajectory of Bitcoin (BTC) in the coming months, predicting a significant surge followed by heightened volatility.

In a video analysis shared with his 73,700 YouTube subscribers, Svenson asserts that if Bitcoin surpasses its current level by nearly 40%, it will enter the fourth stage of a parabolic curve pattern, signaling an imminent breakout.

Technical analysis often employs parabolic curve patterns to identify market trends, with the fourth stage typically serving as a launchpad for a substantial price surge. This "sell point" or correction area marks the peak of the parabolic trend.

"We just witnessed a touch of base four," Svenson explained. "If we hit another high, it would confirm base four. However, confirmation cannot occur until we break out again for the next leg up."

According to Svenson's analysis, Bitcoin is poised for a final extension to the sell point, which aligns with the textbook valuation of $90,000.

Svenson elaborates on the potential consequences of such a price movement: "If you were unnerved by Bitcoin's recent dip [from its all-time high of over $73,000 to below $63,000 earlier this month], you should brace yourself for what's coming. We will witness significantly larger price swings."

Svenson draws parallels to the volatility experienced in 2017, suggesting that if Bitcoin reaches $90,000 and undergoes a 40% correction, it could retrace to the $50,000 range. Subsequently, a rally into the six figures could lead to a classic parabolic breakdown, resulting in a potential halving of portfolio values.

At the time of writing, Bitcoin is trading at $63,987, indicating that it has yet to reach the anticipated breakout level. However, Svenson's analysis provides a valuable insight into the potential market dynamics that may unfold in the near future.

Svenson warns that investors should be prepared for significant price volatility as Bitcoin navigates its path towards the predicted sell point.