Bitcoin (BTC) recently dipped below its 20-day MA and has been struggling to hold the $19,000 mark as well. Therefore, downside looks very likely as momentum indicators also point to additional negative pressure.
A popular crypto strategist and trader, Kaleo, has come up with a theory that Bitcoin (BTC) is gearing up for a rally that may cause many traders to shrug their shoulders and stay on the sidelines.
It is very common for traders to look at the inverted chart of an asset to check its bias from a different perspective. Similarly, Kaleo informs its 535,200 Twitter followers that it has been doing the same thing with Bitcoin.
According to Kaleo’s assessment, a new Bitcoin trend is making its way as the leading crypto asset is gearing up for a massive move.
Kaleo mentioned, “I see more 2018 bear market fractal comparisons being used for this range, and I’m really not a fan of the idea at all. In my opinion, we’ve already seen that big breakdown. We are in the accumulation phase. Marking will catch everyone off guard.”
The analyst’s chart hints that Bitcoin is setting the pace for a rally that may propel BTC to around $40,000, which is an increase of more than 100% from current prices.
The crypto strategist also highlights the performance of the Grayscale Bitcoin Trust (GBTC), a financial instrument designed for institutional investors to gain exposure to Bitcoin without owning the underlying asset.
Based on his analysis, GBTC’s recent price action is a close copy of its performance during the latter stages of the 2018 bear market. This could indicate that the asset is bottoming out and preparing for a recovery rally.
“Here is another high time frame fractal on the GBTC chart to support my bullish bias,” says Kaleo.
Kaleo predicts a Bitcoin rally to $20,000 in the short term. He says, “squeeze it back over $20,000.”
Can Bitcoin Surpass $19,000?
The disappointing trading pattern regarding crypto assets is due in part to the general risk-off mood that has affected stocks and other risk assets since mid-August. With investors betting on a more hawkish Federal Reserve, a softer-than-expected CPI reading could spark a relief rally for Bitcoin and other crypto assets as well. If this does not happen, it will be difficult for Bitcoin to break out of the current $19,000 range any time soon.
Was this writing helpful?
This post Bitcoin Price Analysis: Technical Data Reveals Shocking Trend
was published first on https://coinpedia.org/bitcoin/bitcoin-price-analysis-technicals-reveal-a-shocking-trend/