Top Crypto Strategist Abruptly Changes Bitcoin (BTC) Outlook, Says Liquidation Cascade Could Be Violent
A popular crypto analyst who was previously bullish on Bitcoin (BTC) has suddenly changed stance after yesterday’s abrupt price drop.
Pseudonymous analyst Kaleo tells his 535,500 Twitter followers that his previous call for Bitcoin to rally to $28,000 is now no longer valid.
Kaleo now believes BTC could be down 31% from its current price of $20,198.
“It’s not fun to say and I put my pride aside to see it, but I’m on the side of the bears now. The $28,000 path has been completely invalidated with today’s wick.”
Source: Kaleo/Twitter
According to the analyst’s chart, Bitcoin’s current price action is similar to its market structure earlier in the year when BTC traded above $40,000 before breaking into the $30.00 price range.
Should the fractal play out, Kaleo predicts BTC could fall to $13,750.
Kaleo also says the stock market is also looking extremely bearish after yesterday’s plunge due to “terrible” pressure from the Consumer Price Index (CPI).
“CPI was terrible. Stocks look like pure shit. I was fooled by the breakout, but after taking a little time to see what happened in the previous two major downmoves, the current price action is almost a mirror image. Breakout followed by a violent reversal leading back to lower support.”
Traders track the CPI as the metric measures the rate of inflation in the country. Yesterday’s CPI data showed that inflation rose 0.1% over the past month, making traders and investors nervous amid fears of a potential rate hike by the US Federal Reserve.
Kaleo adds that things could take a turn for the worse for Bitcoin if the S&P 500 loses its September low of 3,886.75.
“If stocks shed the September 6 bottom, I don’t see any narrative leading to BTC decoupling and climbing higher.”
For Bitcoin, Kaleo says the level to hold is $18,500.
“Unfortunately, if $18,500 is lost, the liquidation cascade down should be pretty severe. I still believe accumulating BTC below $20,000 and ETH below $2,000 will pay off in the long run and I will definitely try to add to any move we see down…
A leg down from here means an even emptier timeline. It will mean more shit from your friends and family. It will mean a longer road to recovery. But that doesn’t mean Bitcoin is dead. Be patient, keep stacking compelling games, and appreciate the memes.
Don’t miss a thing – Sign up to receive crypto email alerts straight to your inbox
Check the price action
Follow us on Twitter, Facebook and Telegram
Surf the Daily Hodl Mix
Check the latest headlines
 
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.
Featured Image: Shutterstock/Vectorpocket
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.