A renowned cryptocurrency strategist believes that Bitcoin (BTC) is ready to take off and move towards a new all-time high after surpassing a crucial level. According to cryptocurrencies analyst Kevin Svenson, once Bitcoin turns a key price level from 2021 into support, the leading cryptocurrency is likely to start a major rally that could take the asset to $100,000.
“The next most important point will be to surpass this zone [between $29,000 and $32,000] from 2021, a significant support, break it and confirm it as the new support level. When we achieve that, it will be time to become very optimistic. Until then, we are still in a gray area,” Svenson said.
However, he warns that if the $32,000 level is not broken and established as a strong support, Bitcoin could enter a bearish scenario. Svenson explains that if this level is turned into a new support, it will be the time when he will become extremely confident in the market again, expecting a trend towards new all-time highs to occur.
But Svenson mentions that the recent recovery movement did not come with an increase in market liquidity, meaning that no new money entered the market. This could result in just a momentum-driven increase. Additionally, he points out that Bitcoin’s price chart has been forming a classic head and shoulders pattern, suggesting that a decline may occur soon if bulls take control of the asset.
“The market is currently directionless. In fact, there isn’t much of a trend. We are trading sideways. This is something that hampers sentiment and can cause a lack of momentum and interest, and then a decline,” Svenson noted.
It remains to be seen whether Bitcoin will break through the key level and embark on a new upward rally or succumb to the bearish pressures. The future of the cryptocurrency hangs in the balance as market participants closely watch its movements.