Cryptocurrency analyst Kevin Svenson is mapping out Bitcoin's (BTC) trajectory for the upcoming weeks and months.
In a recent video, Svenson shares with his 73,700 YouTube followers that heightened levels of volatility are anticipated once Bitcoin rallies by nearly 40% from its current position.
According to Svenson, once Bitcoin confirms the fourth stage of the parabolic curve pattern on the weekly chart, volatility levels will surge.
In technical terms, a parabolic curve pattern comprises four stages, with the fourth phase serving as the launching pad for a breakout towards higher levels, commonly referred to as the "sell point" or a zone where a significant correction begins.
Svenson explains,
“What we've just witnessed here was the touch for base four. If indeed we reach another high, that would confirm base four. We can't confirm base four until we break out again for the next leg up…
This indicates that Bitcoin is now aiming for that final extension up to the sell point where the chart essentially goes fully vertical. Fully vertical up to base four, which according to the textbook is $90,000…
I delved into great detail about my projections post hitting $90,000. If this recent Bitcoin dip [from the all-time high of over $73,000 to under $63,000 earlier this month] has rattled you, you're not prepared for what lies ahead because you're going to witness much, much larger swings.”
Regarding the potential impact of volatility levels akin to those seen in 2017, Svenson remarks,
"If we reach $90,000 and experience a typical 2017-style 40% retracement from that level, with a surge to $90,000 followed by a pullback perhaps into the $50,000 range, consolidation, another climb into six figures, and then a classic 2017 breakdown of the parabolic trend leading into a larger trend, your portfolio could halve in value during that period."
Bitcoin is currently trading at $63,987 at the time of writing.