Crypto analyst Crypto Kid delivered a mixed message to the cryptocurrency community, sounding the alarm on a potential Bitcoin downturn.
While acknowledging the short-term dip, Crypto Kid delved into the analysis of Bitcoin’s price action, highlighting the formation of a double top pattern and the significance of key support levels. He outlined potential scenarios, indicating that if Bitcoin fails to find support at critical levels, a further decline to $66.7k could signal a bearish trend reversal.
He talked about how history often repeats itself in the cryptocurrency market. Back in 2020, Bitcoin followed a pattern where it formed a bullish pennant, took some time to consolidate, and then surged. He compared this to his current analysis, suggesting that Bitcoin could follow a similar path, possibly hitting $90k-$92k or even $100k.
He also mentioned a potential rise in altcoins. Regarding Ethereum, he noted that it hasn’t reached a new all-time high yet, but he predicted it could reach $6,800 based on its current trend.
However, amidst the cautionary tone, Crypto Kid shifted gears to discuss the potentially game-changing news of Hong Kong spot ETF approvals. He stressed the significance of these approvals, noting that they could unlock billions of dollars in capital inflow into Bitcoin.
With Bloomberg expecting an approval announcement as early as Monday, Crypto Kid painted a bullish picture of the potential influx of institutional and retail investment into Bitcoin.
Drawing parallels to previous market trends, Crypto Kid predicted a surge in Bitcoin’s price following the approval of spot ETFs, fueled by FOMO from Asian investors seeking exposure to Bitcoin through regulated investment vehicles. He cited the success of other ETFs and the massive inflows they attracted, indicating the potential for similar, if not greater, enthusiasm for Bitcoin ETFs.