Recently, Bitcoin (BTC) slipped below its 20-day MA and has been struggling to hold onto the $19,000 stable mark as well. Hence, the bearish movement seems very likely as the momentum indicators are also pointing to added negative pressure.
A popular crypto strategist and trader, Kaleo, has put forward a theory saying Bitcoin (BTC) is prepping for a rally that may shrug away many traders towards the sidelines.
It is very common for traders to look at the inverted chart of an asset to check on their bias from a different perspective. Similarly, Kaleo informs his 535,200 Twitter followers that he’s been doing the same for Bitcoin.
According to Kaleo’s assessment, a new Bitcoin trend is making its way as the leading crypto asset is gearing up for a massive move up.
Kaleo mentioned, “I’m seeing more 2018 bear market fractal comparisons being used for this range, and I’m really not a fan of the idea at all. In my opinion, we’ve already seen that major breakdown. We’re in the accumulation phase. The markup will catch everyone off guard.”
The analyst’s chart hints that Bitcoin is setting the pace for a rally that can propel BTC to around $40,000, which is more than a 100% surge from the current prices.
The crypto strategist is also noting the performance of the Grayscale Bitcoin Trust (GBTC), a financial instrument designed for institutional investors to gain exposure to Bitcoin without holding the underlying asset.
As per his analysis, GBTC’s recent price action is a close copy of its performance during the latter stages of the 2018 bear market. This might indicate that the asset is bottoming out and preparing for a recovery rally.
“Here’s another high timeframe fractal on the GBTC chart to support my bullish bias,” Kaleo says.
Kaleo predicts a Bitcoin rally to $20,000 for the short term. He says, “squeeze it back above $20,000.”
Can Bitcoin Surpass $19,000?
The disappointing trading pattern with respect to crypto assets is partly due to the general risk-off mood that has hit stocks and other risk assets since mid-August. With investors betting on a more hawkish Federal Reserve, a softer-than-expected CPI reading could spark a relief rally for Bitcoin and other crypto assets too. If this doesn’t happen, it will become difficult for Bitcoin to breach the current range of $19,000 anytime soon.