Crypto Kaleo says ‘a bit lower’ before new highs makes sense for Bitcoin
- Crypto Kaleo does not think there will be a capitulation to beneath $20K or below for Bitcoin.
- However, he sees BTC retesting support levels below current prices before making new highs.
- According to the analyst, despite the bears, it’s possible for new momentum to take BTC/USD to above $28,000.
Bitcoin could drop below $24,000 and retest support levels beneath that buffer zone before finding fresh upward momentum that could include bullish retests of highs above $28,000.
However, even as he charts a potential decline to new lows, popular analyst Crypto Kaleo doesn’t think the Bitcoin market will see new capitulation that pushes prices to $20,000 or below in coming weeks.
According to the analyst, who agrees he might have been “overzealous” in his projection for an upward continuation this week – he had suggested that Bitcoin’s price could tick to $25,000 as risk assets pumped after recent US inflation data – remains bullish and sees a dip in the week as what could offer fresh impetus for higher targets.
Bitcoin rejected at $25k, but…
Indeed Bitcoin rallied to prices above $25k on Sunday before paring some of the gains on Monday. At the time of writing, BTC/USD was poised just above $24k, about 1.3% down in the past 24 hours.
He noted in a tweet:
“I got overzealous on Friday expecting continuation to $28K through the weekend into early this week. I admit when I’m wrong, & while I don’t believe we’re going to see a capitulation to new lows & break beneath $20K, a bit lower before a bit higher makes sense.”
Commenting further on the outlook and his opinion of where next the price of Bitcoin could go, Kaleo added that rejection at $25k (level of May 2022 crash) opens up a retest of lower levels. This includes a decline to the top of mid-June to July range.
The chart he shared in the tweet below shows this:
Should have done the previous chart on the daily – not sure why I had 12 hr candles when I shared it lol, but outside of pure s/r levels shown above – yesterday’s candle was disgusting and typically indicative of a local top… and today’s doesn’t look like it’ll be much better. pic.twitter.com/qwhMhpiNrx
— K A L E O (@CryptoKaleo) August 15, 2022
Bitcoin’s rally this past weekend pushed BTC to its highest price level in two months, and continues to see the flagship crypto hover above the massively important line of $20k.
The area is key for bulls, but Bitcoin skeptic Peter Schiff warns it might not hold, with a possible capitulation to below $10,000 in the offing.
He opined via a tweet on Sunday:
Just to put the #Bitcoin rally into perspective, take a look at this chart. The pattern remains very bearish. There’s both a double top and a head and shoulders top. There’s a rising wedge forming below the neckline. At a minimum support will be tested below $10K. Look out below! pic.twitter.com/OHNhwsgxxs
— Peter Schiff (@PeterSchiff) August 14, 2022