A prominent cryptocurrency analyst known on Twitter as ‘Kaleo’ has informed their more than 550,000 followers that Bitcoin’s (BTC) price might increase by over 40% to $30,000, according to a recent update.
According to Kaleo, the $30,000 price level is a “magnet” that will be achieved in the near future for the first time since June 2022 as the cryptocurrency market rebounds from its bear market.
Bitcoin is presently trading at $21,120, a gain of more than 21% over the previous week as it recovers from the collapse of the cryptocurrency exchange FTX. The rebound brought the market value of all cryptocurrencies close to $1 trillion.
Although Kaleo anticipates a price increase for the leading cryptocurrency in the near future, the shift will not be simple. The analyst stated that they anticipate “one more wick below $20,000” before reaching $30,000.
The move below $20,000 would be a trap for investors. According to Investopedia, a bear trap is a technical pattern that arises when an asset’s price mistakenly suggests a reversal from an uptrend to a downturn, causing bears to initiate short positions.
Short sellers are often obliged to buy back the asset they are selling when prices move against them, resulting in a short squeeze. These compelled orders contribute to the price increase.
As reported by CryptoGlobe, a prominent cryptocurrency analyst who gained a large following on social media after predicting bitcoin’s 84% decline throughout 2018 from over $19,000 to less than $3,000 in a year-long bear market has suggested through two charts that Bitcoin could reach $150,000 by 2025.
Peter Brandt, one of the most recognised classical chartists in the world, has published charts with his nearly 700,000 Twitter followers indicating that $BTC is forming an inverse head and shoulders pattern, which may take the cryptocurrency above $30,000 by the second quarter of this year.
Inverse head and shoulders are the reverses of conventional head and shoulders. It is used to forecast the reversal of downward trends. The pattern is detected when the price of an asset hits a low, rises, falls below the previous low, rises again, and then falls again but not as low as the second trough.
According to Investopedia, after the third dip, the price rises towards the resistance level at the top of the prior troughs.