Analyst predicts Bitcoin could reach new highs

Cryptocurrency analyst Kevin Svenson has expressed optimism about Bitcoin (CRYPTO:BTC) as it trades at more than 20% below its previous all-time high set in March. 

In a recent video shared with his 79,200 YouTube subscribers, Svenson stated that Bitcoin is "likely just a couple of months away from a new all-time high."

Svenson notes that the correction Bitcoin is currently undergoing is a common feature of all market cycles. 

He explained, “People may just be heavily overexposed to the market, having grand expectations to be set for life after this bull run. And because everyone is so overexposed—all the hardcore crypto people—every time there’s a dip, there’s a big concern even though in past cycles, 40% dips happened multiple times in 2017 on the way from $200 to $20,000.”

According to Svenson, Bitcoin is forming a descending broadening wedge on the daily chart, a pattern often considered a bullish indicator. 

He suggests that if this pattern plays out as he expects, Bitcoin could see a surge of up to 63% from its current levels.

Svenson explains that there are different ways to calculate the potential target for Bitcoin based on this descending broadening wedge pattern. 

"From the highest point to the lowest point of the wedge… the target becomes something like $92,000 roughly," he said. 

"From the widest point of the wedge so far, that target comes in at about $89,000. So anywhere from $89,000 to $92,000 is the collective target, using both of these methods."

Svenson's analysis implies that Bitcoin could be gearing up for a significant upward move, potentially reaching between $89,000 and $92,000 if market conditions align with the technical patterns he has identified.

At the time of reporting, the Bitcoin (BTC) price was $58,013.18.