‘Violent Up-Only Price Action’ Around the Corner for Bitcoin, Says Crypto Analyst – But There’s a Catch

dailyhodl.com 01 August 2024 09:29, UTC

A prominent crypto analyst believes that Bitcoin (BTC) is gearing up for a parabolic rally in the current bull market cycle.

In a new strategy session, pseudonymous crypto trader Kaleo tells his 642,800 followers on the social media platform X that based on historic precedence Bitcoin could soon enter price discovery.

Crypto traders and analysts refer to price discovery as a situation where a coin trades at levels never seen before in its history.

“Since the 2012 halving, Bitcoin is up more than 500,000% from $12 to nearly $70,000. The majority of that price discovery happened in three windows that lasted a grand total of less than two years. The other approximate ten years? BTC was either moving sideways or down. Each of these runs kicked off in the year after a halving event.”

Source: Credible/X

According to the trader’s chart, Bitcoin’s current price action is similar to the price action after the three previous halving years before going on massive rallies. Bitcoin’s last halving event, when miners’ rewards were cut in half, occurred in April.

However, the analyst warns that Bitcoin could first retest levels as low as the $40,000 range before soaring into six-figure territory.

“As much effort as everyone on here puts into trying and nail the exact price of each local bottom and each local top, it’s all noise in the big picture. This is historically the best place you can possibly buy. Several months after the halving – ranging beneath the previous cycle’s all-time high. Is there a scenario where BTC could dip back into the $40,000s or $50,000s from a brief moment from here? Sure. But it shouldn’t distract you from the violent up only price action that’s around the corner. The real fun for this bull market hasn’t even started yet.”

Bitcoin is trading for $64,733 at time of writing, down more than 2% in the last 24 hours.

Next up, the analyst predicts that Ethereum (ETH) will dip down to the $2,400 range before soaring to $4,600.

“Still expecting a sweep of the range lows from here before running it up to price discovery.”