A widely followed crypto analyst believes that Bitcoin (BTC) is gearing up for a breakout despite dipping into the $69,000 range earlier this week.
Pseudonymous crypto trader Kaleo tells his 655,200 followers on the social media platform X that Bitcoin may be repeating a similar 2020 pattern and is still on track to print new all-time highs (ATHs).
“When Bitcoin retested its previous ATH near $20,000 in late 2020, it didn’t immediately rip past it. It initially pulled back on a quick wick nearly 20% (Thanksgiving 2020 was a Black Friday sale, especially for alts), and accumulated in a range for 30 days prior to breaking out.
The breakout happened 219 days after the May 2020 halving. We’re in a similar spot now retesting the ATH almost 200 days post 2024 halving. A little bit of a pullback here isn’t any reason for concern. You’ll probably feel it the most in your alts, but those will also be the ones that rip back the hardest…
This is still the calm before the storm. Be more bullish.”
He goes on to note that while Bitcoin may not have as severe of a correction this time around, such a move is still in the cards.
“I’m not saying a pullback of 20% is due. I am saying it shouldn’t take you off guard if it does happen.”
Next, the analyst suggests that Bitcoin may have a correlation with gold, which is printing new highs.
“Also if you don’t think Bitcoin is about to mimic/outpace what we’ve seen so far from gold, you’re crazy.”
He also says gold may soar to more than $8,000 in the coming years.
“Gold just broke out of resistance from a 45 year range. A 200% move to $8,000-plus seems reasonable, but I would expect the duration of the move to be more in line with the extended base (aka it takes several years to play out rather than several months).”
Bitcoin is trading for $69,748 at time of writing, down 3.1% in the last 24 hours.
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