If pseudonymous analyst Kaleo is to be believed, Bitcoin is on the brink of a parabolic rally. This bases Kaleo on past price action. At the time of writing, Kaleo notes that, as in 2019, Bitcoin appears to be entering an accumulation phase that preceded a massive rally at the time.
Accumulation phase
Incidentally, Kaleo, who has more than 500,000 followers on Twitter, does not expect the price explosion for Bitcoin to start today. “I expect a bit of price swing and volatility before the actual green candle appears on the chart,” said Kaleo.
But looking at the Kaleo charts above, there’s no denying that the charts are indeed similar. It is quite possible that we test the resistance a few more times before we really break through, but it looks positive for now.
Kaleo itself predicts that Bitcoin may dip to $25,000 before a breakout to the diagonal resistance starts and the price flies towards $33,000. At the time of writing, Bitcoin is trading just above $28,000. A drop to $25,000 would represent an 11 percent drop in that regard.
Change of sentiment
Kaleo feels that a price drop to $ 25,000, which he believes is not at all inconceivable, will completely change the sentiment around Bitcoin. Where there is now a kind of euphoria again, that can change very quickly if the Bitcoin price drops by more than 10 percent.
“A drop to $25,000 before Bitcoin hits $30,000 would be funny. With that, the group that expects a Bitcoin price of $ 1 million would disappear within 90 days and the group of people who still hope for a drop to $ 12,000 will come back,” said Kaleo.
The popular investor does not believe both stories, but would like to see both these groups put to shame for a while.