A widely followed analyst believes that Bitcoin (BTC) is still on track to hit $40,000 despite the crypto king’s recent struggles to go above $30,000.
Pseudonymous crypto strategist Kaleo tells his 583,800 Twitter followers that he thinks Bitcoin could first witness a sell-off event before rallying toward $40,000.
According to the analyst, Bitcoin will likely retest support at around $25,000 first before regaining its bullish momentum.
“For what it’s worth – these are my thoughts on current Bitcoin price action.
$40,000 is still a magnet.”
Looking at the lower timeframes, Kaleo says that Bitcoin has already taken out diagonal support that has allowed BTC to rally from around $19,000 in March to above $30,000 last month.
“Support broke, low timeframe structure looks weak. Lower before higher makes sense.”
At time of writing, Bitcoin is trading for $28,110, down over 2% in the last 24 hours.
As for Ethereum (ETH), Kaleo thinks that the leading smart contract platform could also see a significant retracement alongside BTC.
The analyst predicts that ETH could carve a local bottom at around $1,540 before rallying toward his target of $2,300 by July.
“Wouldn’t hate seeing something like this play out for ETH.”
At time of writing, Ethereum is trading for $1,838, a fractional decrease in the past day.
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