A closely followed analyst believes that Bitcoin (BTC) is rapidly approaching a point in its parabolic uptrend where the value of the crypto king can skyrocket in a relatively short amount of time.
In a new video, crypto strategist Kevin Svenson tells his 72,500 YouTube subscribers that Bitcoin is following a textbook parabolic curve pattern.
According to the analyst, Bitcoin appears to be in base three of the pattern, putting BTC in a position to witness massive gains in a steep upward move.
“I think this is as clear as day we are currently coming up on the steeper portion of the parabolic trend which is where base three is in the diagram when it gets really steep.
Here we are now, guys. It’s getting pretty steep. What’s going to happen next? How high are we going to go?
The textbook suggests that after base three, you get a double in price: $45,00 times two is the target of the parabola. $90,000 would be the target, according to the textbook.”
Based on the textbook’s diagram, an asset trading at base three of a parabolic uptrend could double in price “in a very short time.”
The analyst also notes that Bitcoin tends to witness bull markets when global liquidity, or the amount of money sloshing around in the world financial system, is on the rise. According to the analyst, Bitcoin is currently rising despite falling global liquidity levels, suggesting that BTC could go a lot higher than crowd expectations if liquidity starts to pick up.
“In these past cycles, Bitcoin is trending up alongside the global liquidity. Now we’re trending up against the liquidity cycle.
So if the liquidity cycle turns around in our favor, that’s sort of a double whammy. Bitcoin’s diverging away from the global liquidity in a positive manner, we have the ETF (exchange-traded fund) approval, the halving is coming up. There are a lot of really good things here for Bitcoin and crypto, so I’m keeping my mind open to the idea that the unexpected is always likely in this market.
The estimated peak value I have is $142,500.”
At time of writing, Bitcoin is worth $51,429.
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