A popular cryptocurrency analyst known on the microblogging platform Twitter as ‘Kaleo’ has shared a new update with their over 550,000 followers on the platform where they suggest Bitcoin ($BTC) could see its price rally over 40% to $30,000.
According to Kaleo, the $30,000 mark is a “magnet,” and the price level will be reached in the near future for the first time since June 2022, as the cryptocurrency market recovers from a bear market.
Bitcoin is currently trading for $21,120 after moving up over 21% over the past week amid a recovery that saw it bounce back from the collapse of cryptocurrency exchange FTX. The recovery saw the wider cryptocurrency market’s capitalization near $1 trillion.
While Kaleo sees the flagship cryptocurrency’s price surge in the near future, the move won’t be straightforward. The analyst noted they are expecting “one more wick beneath $20K” before hitting $30,000.
The move below $20,00 would form a bear trap. A bear trap, according to Investopedia, is a technical pattern that occurs when the price of an asset signals a reversal from an uptrend to a downtrend incorrectly, prompting bears to open short positions.
What often follows is a short squeeze, in which short sellers are forced to buy back the asset they are selling as prices move against them. These forced orders further help prices rise.
As CryptoGlobe reported, a top cryptocurrency analyst that has gained a large following on social media after accurately in January 2018 bitcoin’s 84% decline throughout that year, from over $19,000 to a little over $3,000 in a year-long bear market, has suggested through two charts that there’s potential for Bitcoin to hit $150,000 by 2025.
Peter Brandt, who is one of the world’s most respected classical chartists, has shared charts on the microblogging platform Twitter with his nearly 700,000 followers that suggested $BTC is making an inverse head and shoulders pattern, which could push $BTC to $30,000 by the second quarter of this year.
An inverse head and shoulders pattern is the opposite of the standard head and shoulders pattern. It is used to predict the reversal of downtrends. The pattern is identified when the price of a security reaches a low point, rises, falls again below the previous low point, then rises again, and finally falls a third time but not as low as the second trough.
After the third trough, the price moves upward towards the resistance level at the top of the previous troughs, according to Investopedia.
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