Top Crypto Strategist Abruptly Reverses Outlook on Bitcoin (BTC), Says Liquidation Cascade Could Be Violent
A popular crypto analyst who was previously bullish on Bitcoin (BTC) has suddenly changed his stance after yesterday’s sharp price drop.
Pseudonymous analyst Kaleo tells his 535,500 Twitter followers that his previous call for a Bitcoin rally to $28,000 is now no longer valid.
Kaleo now believes BTC could be poised for a 31% cut from today’s price of $20,198.
“It’s not fun to say this and I had to put my pride aside to see it, but I’m on the side of the bears now. $28,000 path was completely invalidated with today’s week.”
According to the analyst’s chart, Bitcoin’s current price action resembles the market structure at the start of the year when BTC traded above $40,000 before collapsing down to the $30.00 price range.
Should the fractal play out, Kaleo predicts that BTC could fall to $13,750.
Kaleo also says the stock market is also looking extremely bearish after yesterday’s drop due to a “terrible” consumer price index (CPI).
“CPI was terrible. Stocks look like crap. I was fooled by the breakout, but after spending some time reviewing what happened in the previous two major stages, the current price action is almost a mirror. Breakout, followed by violent reversal leading back to lower support.”
Traders keep track of the CPI as the metric measures the rate of inflation in the country. Yesterday’s CPI data revealed inflation rose 0.1% last month, unnerving traders and investors amid fears of a possible rate hike by the US Federal Reserve.
Kaleo adds that things could take a turn for the worse for Bitcoin should the S&P 500 lose its September low of 3,886.75 points.
“If stocks bottom out on September 6th, I don’t see any narrative leading to BTC disconnecting and climbing higher.”
For Bitcoin, Kaleo says the level to hold is $18,500.
“If $18,500 is lost, the liquidation cascade should, unfortunately, be quite violent. I still believe that accumulating BTC below $20,000 and ETH below $2,000 will pay off in the long run, and I will definitely look to add to any move we look lower…
A leg lower from here would mean an even emptier timeline. That will mean more dirt from friends and family. It will mean a longer road to recovery. But that doesn’t mean Bitcoin is dead. Be patient, keep stacking plays with high conviction, and appreciate the memes.”
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