A popular cryptocurrency analyst is urging caution on altcoins amid an over 40% Bitcoin (BTC) rally year-to-date.
Pseudonymous crypto analyst Kaleo tells his 561,500 Twitter followers to be “careful” with altcoins, using the example of the Ethereum(ETH)/Bitcoin pair which currently shows a strong downward trend.
According to Kaleo, Bitcoin looks likely to outperform altcoins as it is the go-to crypto asset during bear market rallies.
“ETH/BTC
This is your reminder to be careful with altcoins.
When Bitcoin squeezes above this range, there’s a good chance a lot of these major support levels that altcoin/BTC pairs are currently sitting on break lower.
BTC becomes a black hole of liquidity in bear market rallies.”
Based on the ETH/BTC chart above, Kaleo seems to be suggesting that when paired against Bitcoin, Ethereum is set to fall from around 0.07 BTC to roughly between 0.051-0.047 BTC, a decline of approximately 31.72%.
Ethereum is trading for 0.07030244 BTC, or $1,656, at time of writing.
Kaleo has previously said that Ethereum typically sets the trend for altcoins.
“Reminder that ETH is the king of altcoins, and when it’s weak vs. BTC, most other altcoins follow.”
Turning to Bitcoin’s price when paired against the US dollar, Kaleo says that the flagship crypto asset’s next move is likely to be a strong upward surge that won’t meet any resistance until BTC is above $28,000.
“Have a feeling the move above this range for Bitcoin will be so violent that the next real range you’ll have the opportunity to bid above $24,000 will be $28,000 – $30,000.”
Bitcoin is trading at $23,830 at time of writing.
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