Cryptocurrency analyst Crypto Kid has delivered a mixed message to the cryptocurrency community, sounding the alarm about a potential Bitcoin slowdown.
While acknowledging the short-term decline, Crypto Kid delved into the analysis of Bitcoin price action, highlighting the formation of a double top pattern and the importance 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 explained how history often repeats itself in the cryptocurrency market. In 2020, Bitcoin followed a pattern in which it formed a bullish pennant, took a while to consolidate, and then surged. He compared this to his current analysis, suggesting that Bitcoin could follow a similar path, eventually reaching $90,000 to $92,000 or even $100,000.
He also discussed a potential rise in altcoins. Regarding Ethereum, he noted that it has yet to reach a new all-time high, but he predicted that it could reach $6,800 based on its current trend.
However, amid the cautious tone, Crypto Kid shifted gears to discuss the potentially game-changing news of spot ETF approvals in Hong Kong. He highlighted the importance of these approvals, noting that they could unlock billions of dollars in capital inflows into Bitcoin.
With Bloomberg expecting an approval announcement as early as Monday, Crypto Kid painted an optimistic picture of the potential influx of institutional and retail investment into Bitcoin.
Drawing parallels with previous market trends, Crypto Kid predicted a rise in the price of Bitcoin following the approval of spot ETFs, fueled by FOMO from Asian investors seeking exposure to Bitcoin via trading vehicles. regulated investment. He cited the success of other ETFs and the massive inflows they have attracted, indicating the potential for similar, or even greater, enthusiasm for Bitcoin ETFs.
