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.
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.
“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.
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:
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