A popular crypto trader says he’s keeping a close watch on the stock market to see whether Bitcoin (BTC) and the rest of the crypto markets could start the new year with a bang.
Pseudonymous analyst Kaleo tells his 553,500 Twitter followers that the S&P 500 (SPX) needs to take out a key resistance level to kick off a rally.
According to the analyst, a burst to the upside for the SPX could be bullish for Bitcoin and crypto.
“I’m still looking for a reclaim of ~3,900 for SPX as a solid long trigger for a move up to the August highs of ~4,300. Expecting Bitcoin and the broader crypto market to rally with it.”
At time of writing, the S&P 500 is trading at 3,824.13 points.
Looking closer at Bitcoin, Kaleo says he believes Bitcoin could rally toward $22,000 in the next couple of months, suggesting an over 31% upside potential from BTC’s current price of $16,704.
“What if the 2023 lows are already in?”
Although Kaleo is bullish on Bitcoin, fellow crypto strategist Capo says that Bitcoin’s recent strength is likely meant to trap buyers before another capitulation event.
“It takes a tiny pump into resistance to turn everyone bullish again. This same bull trap has been happening during the entire 2022, yet people don’t learn. $12,000 is very likely.”
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