Benzinga - by Bibhu Pattnaik, Benzinga Staff Writer.
Crypto analyst and trader Kevin Svenson recently shared his perspective on the potential future movements of Bitcoin (CRYPTO: BTC), drawing a comparison with the S&P 500 index.
In an YouTube video on Friday, Svenson highlighted the S&P 500's role as a forerunner in predicting Bitcoin's price surges, especially when it comes to setting new records.
“The S&P is always leading Bitcoin on the all-time high breaks. And this is a good sign because Bitcoin is still 40% below its all-time high and the S&P is right near its all-time high," he said.
Examining past events, Svenson noted the time intervals between the S&P 500 setting new highs and Bitcoin following suit.
He referenced the second and third Bitcoin halvings in 2016 and 2020 as prime examples of this pattern, in which Bitcoin lagged just behind the S&P 500 in achieving new peak values.
Also Read: This Crypto Analyst Foresees Upswing In Bitcoin's Value Before Major Plunge
"So if you look back in time, the second halving in 2016, the S&P 500 broke its all-time high during the second halving and about seven months later, Bitcoin broke its all-time high. That was about a seven-month difference," he added. "And the third halving in 2020, the most recent halving, the S&P broke its all-time high and about four months later, Bitcoin broke its all-time high.”
With the S&P 500 index currently just shy of its highest point of 4,796 points achieved in early 2022, Svenson suggested that Bitcoin could be nearing a similar milestone.
"Bitcoin is likely, I would say, less than half a year away, probably about four months away from its all-time high," he said, indicating a potential uptrend for the cryptocurrency in the near term.
At the time of writing, Bitcoin was trading at $41,545.10, down by almost four percent in the last seven days.
Now Read: Bitcoin Primed To Explode By Over 400%, Says Crypto Analyst
Photo: Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.