A popular crypto analyst is predicting an unexpected breakout for Bitcoin as BTC and equities markets start to show strength.
Pseudonymous analyst Kaleo tells his 535,000 Twitter followers that Bitcoin is inches away from breaking through a nearly year-long diagonal resistance line.
According to him, Bitcoin may be ready for a short squeeze, which occurs when an excessive amount of short sellers get liquidated, triggering a cascade of upwards price volatility.
“Bitcoin / BTC
On the verge of breaking above an 11 month bearish resistance dating back to the ATH in November of ‘21.
Squeeze season and the green days of Uptober are nearly upon us.”
Looking at the stock, market, Kaleo says that the S&P500 looks to have recovered after blowing past the $3,670 level where the index crashed to in June.
“Stonks have recovered and absolutely ripped past the June lows.”
The closely followed analyst also compares BTC to Apple (APL). According to Kaleo, when you pin the price of Bitcoin against APL, a clear pattern of bear trends followed by volatile outperformances from BTC. He says that BTC is due for another outperformance phase.
“I still enjoy looking at macro comparisons of Bitcoin vs. leaders across all markets.
“BTC vs AAPL is a fun one. The chart is defined by HTF (high time frame) bearish trends, subsequently followed by seasons of extreme outperformance by BTC.
We’re on the verge of another breakout.
Are you ready?”
At time of writing, Bitcoin is trading just above $20,000, up 3.5% on the day.
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Featured Image: Shutterstock/Tomasz Makowski/Melkor3D
