A veteran crypto trader is taking to the charts to assess the road ahead for Bitcoin (BTC) as the leading cryptocurrency’s latest rally wanes.
The pseudonymous analyst Kaleo provides his 478,400 Twitter followers with a BTC chart dating back to December of 2020 which plots out potential price movement through June of this year.
Kaleo anticipates that Bitcoin will capitulate below $37,000 with a potential to flirt with the low $30,000 range.
“As the $37K target approaches, it’s time to start planning out what happens next.
Likeliest scenario I see is a weak bounce off support, followed by a breakdown back to range lows in the low 30s.”
Kaleo next posts a chart showing Bitcoin’s perpetual futures contracts dating back to late January, which shows a rising trend of higher lows but also indicates that Bitcoin will continue to fall after its last rally peaked at $47,878 back on March 28th.
“$37,000. Good night.”
The trader goes on to highlight the $41,000 to $42,000 price range as being of interest to high-time frame (HTF) investors. While remaining cautious himself, Kaleo says he’s open to the possibility that BTC could surpass this level and signify a more bullish setup.
“Another factor to consider is $41 – $42K has been a clear-cut decision level for HTF [higher timeframe] momentum over the past 18 months.
Still plenty of resistance to reclaim / break above, in which case the above scenario would be invalidated.
For now, I still lean bearish.”
The chart guru concludes his Bitcoin prognosis by following up on a March 16th post where he made a long-term projection for BTC to potentially reach the high $40,000 or low $50,000 range, but without breaking toward new all-time highs anytime soon.
“And if you’re wondering, of course I’m still high-time frame bullish on BTC.
Just gotta be patient sometimes.”
At time of writing, Bitcoin is trading sideways at $41,244. While up 6.3% from a weekly low of $38,779 on Monday, BTC remains down 6.2% from a two-week high of $43,937 back on April 6th.
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