A widely followed crypto analyst says that Bitcoin (BTC) has a lot more room to run higher after forming a bullish market structure.
Pseudonymous analyst Kaleo tells his 563,800 Twitter followers that Bitcoin is likely about to run up and test its diagonal resistance at $27,000.
At that point, he forecasts a temporary retest before Bitcoin surges even higher.
“Looking for this move to continue to the send to the upper diagonal resistance of this range near $27,000 before seeing much of a pullback.”
Looking at his chart, Kaleo forecasts that Bitcoin will reach about $40,000 in April, a more than 54% increase from its current value.
Bitcoin is trading for $25,899 at time of writing after dipping last week into the $19,000 price level.
Kaleo says Bitcoin’s price action is similar to the mid-February rally when the king crypto entered new range highs.
“Current PA (price action) is incredibly reminiscent of the mid-February rally that established new range highs.”
Kaleo had warned investors about price volatility related to the morning release on March 14th of the latest Consumer Price Index (CPI) data, which is often interpreted as an indicator of whether the Federal Reserve will remain hawkish to draw down inflation.
“Either way – I’d still tread with caution leading into tomorrow’s CPI print. Expecting price to resolve higher – but expecting the typical extreme volatility to happen alongside it.”
With the release of the CPI data, which showed signs of cooling inflation, Kaleo reaffirms his price prediction.
“STRAIGHT TO RESISTANCE W/ NEW RANGE HIGHS.
NOT TOO BAD.”
Kale also warns investors that altcoins are unlikely to outperform Bitcoin in 2023 and not to fall victim to the sunk cost fallacy, which is a tendency for people to irrationally stick with old investment decisions even after being proven wrong.
“Be careful of the sunk cost fallacy holding on to your alt bags. If you have zero exposure to Bitcoin, the belief that ‘it’s only a matter of time before my bags catch up because BTC is so boring’ will likely leave you underperforming the majority of 2023.”
However, Kaleo says altcoins are set for a new chapter come next year.
“2024/2025 is a different story.”Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
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