Trader Suggests Peaceful Period Signals Upcoming Bitcoin Surge, Assures Dip Isn’t Alarming – The Explanation

A prominent cryptocurrency analyst has suggested that Bitcoin (BTC) is on the verge of a breakout, even though it recently dipped to the $69,000 level earlier in the week.

A crypto trader operating under the pseudonym Kaleo shared with his 655,200 followers on social network X his belief that Bitcoin’s current market behavior is reminiscent of 2020 and posits that it could be an indicator of forthcoming record-high prices.

“Just like when Bitcoin revisited its prior high around $20,000 at the end of 2020, it didn’t skyrocket past it without hesitation. There was an initial retraction, with a swift decline of nearly 20% (Thanksgiving 2020 turned out to be a ‘Black Friday’ discount, particularly for altcoins), followed by a month-long period of consolidation before it finally broke through.

That upward surge came 219 days after the halving in May 2020. Currently, we find ourselves in a similar situation, retesting the high-water mark nearly 200 days after the 2024 halving. A slight pullback at this juncture isn’t something to be worried about. Altcoins may bear the brunt of it, however, they’re likely to bounce back with the greatest vigor…

This period is merely the lull before the storm. Now is the time to be even more bullish.”

In further commentary, Kaleo points out that while Bitcoin may not face as drastic a correction as before, it is still a possibility.

“I’m not predicting a drop of 20%, but if it happens, it shouldn’t catch you by surprise.”

The analyst then draws parallels between Bitcoin’s performance and that of gold, which has been hitting new highs.

“If you think Bitcoin won’t follow or even exceed the trajectory that gold has set recently, you’re mistaken.”

Kaleo also forecasts that gold has the potential to ascend past the $8,000 mark in the forthcoming years.

“Gold has recently broken free from a 45-year resistance band. A 200% increase to over $8,000 seems plausible, although it may take a few years to materialize, correlating with the time frame of the base’s formation, rather than just months.”

As of the latest update, Bitcoin is trading at $69,748, experiencing a 3.1% decrease over the past 24 hours.

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