Trader and economist Alex Kruger is predicting a rally for the two biggest cryptocurrencies by market cap during the holiday season.
Kruger tells his 104,800 Twitter followers that a rally driven by unleveraged traders could run till the end of the year.
According to the crypto trader and economist, Bitcoin (BTC) could surge above $55,000 while Ethereum (ETH) could hit a new all-time high.
“Odds are high in my opinion we get a spot-driven hated Santa rally into year-end. BTC back to upper $50,000s, nothing too crazy, ETH to all-time highs.
Hated, as so many market participants sold, and it can be very hard to change bias and buyback. Those who sold will hate it.”
Bitcoin is trading at $49,292 at the time of writing. Ethereum is trading at $4,064 at the time of writing, down about 17% from its all-time high of $4,878.
Kruger says that he sees Bitcoin surging above $55,000 due to the presence of an air pocket occurring below the BTC price of the mid $50,000.
“Thinking BTC upper $50,000 because there’s an air pocket there.”
In an upward move, an air pocket develops when the price breaks out but the lows of a couple of subsequent candles do not fall to the level of the low of the breakout candle.
During a downward move, an air pocket develops when the price breaks out but the highs of a couple of subsequent candles after the breakout do not rise to the level of the high of the breakout candle.
Kruger also says that while the Federal Reserve’s decision to raise interest rates starting in 2022 and scale back asset purchases has not ended the bull cycle, the upward trajectories will be marked by more corrections than was the case previously.
“The Fed did turn hawkish, and the asset-buying program will progressively be removed, so good idea to not let bullish expectations get too ambitious.
[The] bull market goes on, just not such an easy up-only ride any longer.”
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