A closely followed crypto strategist believes that Bitcoin (BTC) seems poised for a quick breakout to the upside.
Pseudonymous analyst Kaleo tells his 553,400 Twitter followers that King Crypto Bitcoin could be preparing for a short squeeze.
“Finally, it looks like BTC is poised to break out of the $16,000-$17,000 base area where it has been stuck for the past few weeks. Start squeezing.”
Source: Kaleo/Twitter
A short squeeze occurs when traders borrowing an asset at a certain price hoping to sell lower to make up the difference (short) are forced to buy back when the trade moves against them.
Looking at Kaleo’s chart, he seems to think Bitcoin could go as high as $18,800. At the time of writing, Bitcoin is changing hands at $16,930, suggesting nearly 10% upside potential for the crypto king should it meet the analyst’s target.
As for Ethereum (ETH), the crypto strategist also believes the top smart contract platform is poised for a rally.
“Ethereum/ETH finally looks poised for the next leg up in the ~$1,400 area.
Should see a small pullback and consolidation there before moving higher.”
At the time of writing, Ethereum is valued at $1,261.
The crypto strategist is also keeping an eye on the S&P 500 (SPX). According to Kaleo, SPX seems poised to clear its resistance at 3,900 points.
“One more time when SPX 3,900 breaks through [points]Fasten your seatbetls.”
Traders are keeping an eye on the SPX as crypto markets tend to mirror movements in the stock market index.
At the time of writing, SPX is trading at $3,895.
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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any risky investments in bitcoin, cryptocurrency or digital assets. Please note that you transfer and trade at your own risk and any losses you incur are your responsibility. The Daily Hodl does not recommend the purchase or sale of cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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