Famous crypto whale and analyst Kaleo, closely followed by investors, said that Bitcoin‘s (BTC) performance against the S&P 500 Index (SPX) is part of the increasing evidence that BTC is decoupling from the stock market. According to the analyst, BTC has enough fuel in its tank to continue its upward movement.
Kaleo: Bitcoin’s Path is Open Up to $40,000
Crypto analyst Kaleo said that based on BTC’s historical performance against the SPX, it is now a possible scenario for BTC to move towards the next major resistance zone at $40,000. The analyst used the following statements in his bullish interpretation:
Throughout the past month, we’ve finally seen Bitcoin make the ‘bullish divergence’ from stocks that everyone has been waiting for. While BTC has only gained 36% against the US dollar since its lowest levels in September, it has gained 48% against the SPX. This chart is one of the reasons why I think there is still plenty of fuel in the tank to reach $40,000. The horizontal white line that corresponds to the all-time high level in 2017 has been an important pivot level for BTC’s price action in the past few years.
This level has served as a strong foundational support for the 2021/2022 bull market and acted as a pivot point for real momentum shifts during the liquidation wave towards the lows we experienced from the second half of 2022 to the beginning of this year. Now that we have surpassed this level, it can be said that BTC has a clear path without any major resistance levels until the level where it suffered a sell-off due to the LUNA/UST crash, which is approximately $40,000.
“Take a Long-Term Look at Bitcoin”
Although Kaleo is currently on the bullish side expecting a rise in the biggest cryptocurrency, he also drew attention to a bearish scenario that he believes is worth being prepared for. The analyst noted that a crash similar to March 2020 that would liquidate leveraged investors is still a very real possibility. Emphasizing the need to focus on the peak that could be seen in 2024-2025 instead of short-term outlook for Bitcoin, he said the following:
While I am currently expecting an increase in price, I believe that Bitcoin should be looked at from a long-term perspective rather than a short-term one. So, as much as I find this rise exciting and hope for its continuation, I am also prepared for the possibility of it not continuing.
If a nuclear bomb hits the market as it did in 2020, the price will drop rapidly, but I will buy without fear. I don’t want to give the market even the slightest chance to repeat the same mistake twice. And a year from now, whether I buy from here, $20,000, or $40,000, I have a high level of confidence that all of these will be rational, high-profit purchases. 2024-2025 will be a very bright period. Take care of your money before the fun begins.
