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- Bitcoin’s price is in recovery mode, but Pseudonymous analyst Kaleo does not rule out a $40,000 support zone.
- Many market experts, including Matt Hougan, have predicted a massive uptrend for Bitcoin.
Pseudonymous crypto analyst Kaleo has predicted that the price of Bitcoin (BTC) may drop to the $40,000 high range before rallying to an All-Time High (ATH). The analyst’s prediction comes amid a recent market volatility, which saw BTC fall to a cycle low of $49,228.
Analyst Raises Hope for BTC Rally
Although Kaleo says Bitcoin’s worst is over, he anticipates more price corrections before the market starts to recover. The analyst thinks it is possible for the cryptocurrency’s price to briefly drop to the $40,000 high range. However, he believes it is more likely that the price will find a bottom after a sharper decline to the low $50,000.
The flush to the low 50s happened pretty fast.
Imo this plays out a bit more of a rounded bottom than an immediate move back to the highs.
e.g. could bleed slightly lower and chop in the lower bounds of this range the next few weeks before bouncing back
As far… pic.twitter.com/CwbaFTCSvj
— K A L E O (@CryptoKaleo) August 5, 2024
For the next few weeks, the analyst considers the $50,000 level to be the next critical support for BTC before recovery. Analyzing Kaleo’s chart, Bitcoin could rally to $80,000 by 2024. Notably, the analyst projects a gradual price increase for BTC rather than an abrupt rise to new ATHs.
Kaleo sees Bitcoin’s current price as a good investment opportunity for investors and advises them to begin accumulating the coin. “Gameplan is still the same. Accumulate now – send into the end of the year,” Kaleo stated.
True to Kaleo’s predictions, Bitcoin has found its footing, increasing steadily in the daily time frame. At press time, BTC has recorded a 5.5% increase within the past day, setting its price at $55,710. The trading volume also increased by 2.7% to over $76 billion, while the market moved to over $1 trillion.
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Asset transfers from Jump Crypto ignited the initial BTC volatility amid a CFTC investigation. As mentioned in our earlier report, weak payrolls and uncertainty in the forthcoming US elections also contributed to the market volatility. While BTC fell to $49,578.89 in the past 24 hours, its lowest level in months, Ethereum’s value dropped to a low of $2,186.68.
Amid this market downtrend, Bitwise CIO Matt Hougan is also very optimistic about the coin’s potential recovery. According to our earlier article, Hougan anticipates a substantial inflow into the Bitcoin market through spot Bitcoin Exchange-Traded Funds (ETFs).
Surge in Bitcoin ETF Market
Meanwhile, BTC ETFs have maintained strong interest, with net inflows surpassing $18 billion this year despite a challenging market. In a recent article, we covered that Capula Management invested $500,000,000 in the spot Bitcoin market. The investment includes approximately $250 million in BlackRock’s iShares Bitcoin Trust and over $210 million in the Fidelity Wise Origin Bitcoin Trust.
The investment from Capula ranked Europe’s fourth-largest hedge fund, highlights the growing institutional interest in Bitcoin despite market volatility. Prior to this update, Michigan State expressed intentions to include spot Bitcoin ETFs in its pension funds. The state revealed that it invested $6.6 million in this investment vehicle.
As more people and institutions begin to see the importance of using Bitcoin for investments, the price of Bitcoin is likely to climb further.
