Bitcoin analyst and trader Kevin Svenson believes that Bitcoin is showing bullish signals reminiscent of earlier this year. According to Svenson, Bitcoin is breaking out of a reversal bottom pattern, indicating a bullish trend. He points out that Bitcoin is also trading above the Relative Strength Index (RSI) downtrend line on the daily chart, which suggests a continuation of the upward movement. The RSI is an indicator used to identify overbought or oversold conditions.

Svenson compares Bitcoin’s current price action to what was observed before the cryptocurrency surged to around $73,737 in mid-March. He notes that both instances exhibit a sideways consolidation with a downward sloping resistance on the RSI, followed by a breakout leading to new all-time highs. Svenson concludes that Bitcoin is currently in the fourth stage of a parabolic curve pattern, which could potentially reach a peak of $90,000. In this pattern, the price trades within a range at each stage before continuing to rise.

While $90,000 is the textbook target, Svenson suggests that Bitcoin may surpass this level considering the recent halving event. However, he predicts that a cooldown period may be necessary before reaching higher levels. This could mean that Bitcoin reaches the parabolic trend target of $90,000 before experiencing a breakdown and sideways consolidation, followed by another push upward to create a larger and more expansive parabolic trend.

Please note that the opinions expressed in this article are not investment advice, and investors should conduct their own research before making any high-risk investments in Bitcoin or other cryptocurrencies. The Daily Hodl also does not endorse the buying or selling of cryptocurrencies and is not an investment advisor.