One of the market’s biggest Bitcoin (BTC) whales has updated its forecasts for the coming years as the price trades above $16,000.
Bitcoin whale warns of another wave of selling
The well-known analyst and Bitcoin whale nicknamed Kaleo reported that the leading crypto broke the diagonal support on the hourly chart. According to the analyst, Bitcoin is currently preparing to make a sharp correction to $12,500. In new technical charts he shared during the day, he says current levels are combined with 2019-2020 highs:
Lower levels before any bounce is the most likely scenario for now. We have already seen that the reversal pennant break points lower. The next solid support level converges at the retest of the trend break and support from the 2019-2020 base range highs.
cryptocoin.com As you follow, BTC is currently trading just above $16,400. If Kaleo hits his target, he will see a potential drop of more than 22%.
Analyst predicts Bitcoin will suddenly bounce from the $12,500 region
In his later tweets, Kaleo said that Bitcoin will suddenly jump from 2019-2020 highs. This region, which coincides with $12,500, serves as a historical support level for BTC. According to the analyst, the probability of finding new buyers at this level is quite high:
A V-based recovery from this slump followed by a few months of accumulation moving sideways into spring 2023 makes sense.
Kaleo predicted that Bitcoin price will regain its former highs in 2023
The crypto analyst expects Bitcoin to eventually regain its bullish momentum. He predicts that Bitcoin will rise as high as $40,000 after a period of horizontal consolidation towards the first quarter of 2023. Looking at the graph in which he describes this scenario, Kaleo says:
As I show in the chart below, I think the big momentum shift will happen on the break of the broad timeframe daily downtrend. I do not expect this move to hit an all-time high, but a return to the $30,000 – $40,000 range followed by further cuts for the next halving is expected.
Bitcoin price will reach new highs during the next halving, according to Kaleo
The next Bitcoin halving, with Bitcoin mining rewards halving, will occur in March 2024. Thus, the daily emissions of BTC will be effectively reduced. Kaleo concludes by predicting that BTC will hit a new record high by the end of 2024 or early 2025. But the recent bankruptcy news reveals that the miners will barely last as long as this date.
Data from CoinWarz shows that since July 2021, BTC mining difficulty has been rising almost non-stop, recently reaching an all-time high of 36.9505T. The higher the mining difficulty, the harder it is for miners to mine successfully. Rising costs are forcing miners to sell BTC to continue their operations.
