A closely followed crypto trader is issuing an alert to Bitcoin (BTC) holders, saying that the king crypto’s current market structure looks similar to its price action prior to a deep plunge about three years ago.
Pseudonymous analyst Kaleo tells his 566,300 Twitter followers that Bitcoin is currently consolidating above a diagonal trendline after taking it out earlier this year.
According to the trader, the price action is reminiscent of how Bitcoin moved in early 2020 when it rallied from around $6,000 to $10,000 only to capitulate back to $3,000 in March of the same year.
Although Bitcoin’s current market structure appears ominous, Kaleo says that there’s still a chance for BTC bulls to come out ahead as long as the trendline holds.
Should the trendline fail to hold, Kaleo warns that BTC will likely witness a massive sell-off event.