Kaleo, a well-known anonymous cryptocurrency analyst, and the trader has made a bold prediction for Bitcoin (BTC). In a tweet to his over 569,500 followers, the analyst stated that Bitcoin’s rally to $40,000 will happen a lot quicker than most people think. According to Kaleo, many potential investors are waiting for a dip in prices and will be left watching from the sidelines.
He is a firm believer that $40,000 is a magnet for BTC and has previously set that price point as a target. The flagship cryptocurrency has been experiencing strong bullish momentum, and Kaleo believes it will continue.
Potential Altcoin Rally
While Kaleo remains bullish on Bitcoin, he does offer a warning about altcoins. In a tweet, he suggested that a short-lived altcoin rally could occur when Bitcoin dominance temporarily retraces on its way to rising above 52%. Kaleo believes that the current BTC dominance level of 47% to 52% is the range where an altcoin season could happen.
BTC dominance is currently at 46.99% at the time of writing, according to TradingView. However, Kaleo warns that altcoins will ultimately lose value relative to Bitcoin as the cryptocurrency asset renews its bullish momentum. The analyst advises those with an overweighted altcoin portfolio to consider rebalancing their holdings and rotating some of their profits back into Bitcoin.
Bitcoin Price Update
Despite Kaleo’s optimistic predictions for Bitcoin, the cryptocurrency’s price has fallen 3% in the past 24 hours to $27,621 at the time of writing. BTC had previously hit highs above $28,500 on Wednesday but tumbled after the Fed raised interest rates by a quarter of a percentage point. However, Bitcoin has rebounded from a trough below $27,000, with the current price hovering just under $28,000.
The decision to raise interest rates reinforced the Federal Reserve’s concerns that inflation remains problematic, and that it remains “strongly committed to returning inflation to our 2% objective.” Traders of Bitcoin-tracked futures took on over $150 million in losses amid the volatility, with billions in open interest effectively getting washed out.
Do Your Own Research!
While Kaleo’s predictions and warnings offer valuable insights for those looking to enter the market or adjust their existing portfolios, it’s important to remember that cryptocurrency trading is a high-risk endeavor, and all investments carry the potential for loss.
Source: https://coinpedia.org/bitcoin/bitcoin-price-prediction-btc-price-to-hit-40000-sooner-than-you-think/