Analyst aims to replicate the S&P 500’s impressive bull run
Renowned cryptocurrency analyst and trader, Kevin Svenson, has put forth an intriguing forecast regarding the potential path of Bitcoin (BTC) in relation to the S&P 500.
Svenson, in his YouTube video titled “BITCOIN WILL FOLLOW S&P 500 INTO ALL TIME HIGHS,” delves into the possibility of Bitcoin reaching new record highs, drawing parallels to the performance of the S&P 500. He notes that the S&P has consistently led Bitcoin in breaking all-time highs, and this is particularly promising as Bitcoin is still below 40% of its peak, while the S&P is nearing its zenith.
This prediction is rooted in Svenson’s analysis of market trends and indicators, indicating that Bitcoin may witness a significant surge in the coming months, potentially mirroring the unprecedented highs of the S&P 500.
Svenson highlights the S&P 500’s position as a crucial factor in his projection of Bitcoin’s future performance. He suggests that Bitcoin could be mere months away from achieving a new all-time high, aligning with the upward momentum of the S&P 500.
Referring to his analysis, there is a possibility of Bitcoin experiencing further upward movement prior to the next Bitcoin Halving. He also points out a historical pattern where a dip occurred before a bull run leading up to previous Bitcoin Halving events.
Svenson goes on to elaborate that if the S&P 500 surpasses its all-time high, Bitcoin may follow suit.
In October, Svenson predicted that Bitcoin’s value could skyrocket to $70,000, contingent upon certain key developments.
According to Svenson, his prediction is supported by data-driven insights and crucial market shifts.
The first factor he highlights is the significant resistance level of $32,000, along with increased price volatility of Bitcoin following the establishment of this level and the recent approval of the spot Bitcoin ETF (exchange-traded fund).
He further emphasizes that even if Bitcoin does not immediately breach its all-time high, significant price fluctuations should be anticipated, particularly around the $32,000 mark. Based on this analysis, the cryptocurrency market could soon witness Bitcoin surpassing the $70,000 threshold.
It is noteworthy that Svenson did not solely base his forecast on market patterns. He also draws attention to the approval of the spot Bitcoin ETF (exchange-traded fund).
Bitcoin, the world’s most popular cryptocurrency, has experienced a tumultuous journey in recent years. One of the most significant events that could impact Bitcoin’s price is the upcoming Bitcoin halving, scheduled for 2024.
The halving occurs approximately every four years, or after every 210,000 blocks. During a halving, the reward for mining a block of Bitcoin is halved, resulting in fewer new Bitcoins being created. This reduction in supply can lead to increased demand and subsequently drive up the price.
Historically, Bitcoin has always witnessed a surge after each halving. In 2012, the price of Bitcoin rose from around $12 to over $266. In 2016, it increased from around $400 to over $1,900. And in 2020, it soared from around $7,000 to over $60,000.
At the time of writing, Bitcoin is trading at approximately $41,617, with a market capitalization exceeding $815 billion, according to CoinGecko.
