Kevin Svenson, a prominent cryptocurrency analyst and trader, has made a compelling prediction regarding the potential trajectory of Bitcoin (BTC) in relation to the S&P 500.
Bitcoin’s potential surge to a new all-time high
In his YouTube video entitled “BITCOIN WILL FOLLOW S&P 500 INTO ALL TIME HIGHS,” Svenson discusses the possibility of Bitcoin reaching new all-time highs, drawing parallels to the performance of the S&P 500, stating that the S&P has consistently led Bitcoin in all-time high breaks, and this is promising as Bitcoin is still below 40% it’s all-time high while the S&P is approaching its peak.
This prediction is based on his analysis of market trends and indicators, suggesting that Bitcoin could experience a significant surge in the coming months, potentially mirroring the record highs of the S&P 500.
According to Svenson, the S&P 500’s position serves as a key factor in his projection for Bitcoin’s future performance. He suggests that Bitcoin may be just months away from achieving a new all-time high, aligning with the upward momentum of the S&P 500.
Citing his analysis, there is a possibility of Bitcoin experiencing further upward movement before the next Bitcoin Halving. He also noted a historical pattern where a dip occurred before a bull run preceding the previous Bitcoin Halving events.
He elaborated that should the S&P 500 surpass its All-Time High, Bitcoin might also follow suit.
In October, Svenson predicted that Bitcoin’s value could soar to $70,000, contingent upon certain key developments.
According to Svenson, his prediction is backed by data-driven insights and pivotal market shifts.
First was the crucial resistance level of $32,000, an increase in Bitcoin’s price volatility following the establishment of $32,000 and the now-approved spot Bitcoin ETF (exchange-traded fund).
He further emphasized that even if Bitcoin doesn’t immediately breach its all-time high, we should anticipate significant price fluctuations, particularly around the $32,000, from this analysis, the cryptocurrency market could soon witness Bitcoin breaking past the $70,000 threshold.
Notably, Svenson didn’t base his forecast solely on market patterns. He also draws attention to the approval of the spot Bitcoin ETF (exchange-traded fund).
More volatility expected
Bitcoin, the world’s most popular cryptocurrency, has been on a rollercoaster ride in recent years. One of the most significant events that could impact Bitcoin’s price is the upcoming Bitcoin halving, which is scheduled to occur in 2024.
The halving is a process that occurs every 210,000 blocks, or roughly every four years.
When a halving occurs, the reward for mining a block of Bitcoin is cut in half. This means that fewer new Bitcoins are being created, which can lead to an increase in demand and price.
Historically, Bitcoin has always pumped after halving. In 2012, the price of Bitcoin increased from around $12 to over $266. In 2016, the price of Bitcoin increased from around $400 to over $1,900. And in 2020, the price of Bitcoin increased from around $7,000 to over $60,000.
At the time of writing, Bitcoin is trading at around $41,617, with a market cap of over $815 billion, according to CoinGecko
