With December on the horizon, a well-known analyst suggests the month could bring good news for the crypto market. The bottom for Bitcoin and other assets may be near, with the analyst forecasting a potential price rally during the Christmas period.
Current Market Resembles Covid-Era Drop #
Last Friday, the price of Bitcoin fell to $80,000, a level it hadn’t approached in over half a year. Since then, however, the price has recovered, with Bitcoin currently trading at $87,393.
According to one analyst, this might just be the bottom for Bitcoin and the rest of the crypto market. Kaleo shared on X that the current market bears a striking resemblance to the Covid-19 period a few years ago.
This year, the market fell sharply due to import tariffs imposed by U.S. President Donald Trump, among others with China. This decline looks a lot like the one that occurred in response to the Covid-19 pandemic, the analyst noted.
The Bottom for Stocks and Crypto #
It’s not just the crypto market; the stock market also shows many similarities to 2020. According to Kaleo, these two markets are strongly linked.
Kaleo believes the bottom will be reached soon, precisely because some analysts are assuming the market may have peaked and is about to fall. This also happened in 2020, which was followed by a brief decline and then a period of strong growth.
“Everyone is expecting a peak and is reducing risk, waiting for the next crash. The market does fall, but finds a base relatively quickly and continues to rise,” Kaleo predicts.
Analyst Hopes for Santa Rally #
The analyst expressed hope for a Santa Rally. This is a phenomenon where prices rise significantly during the Christmas period, the last weeks of the year. If prices behave as they did in 2020, this price rally is coming, according to Kaleo.
However, a Christmas rally is not a guarantee. Last year, hope for a Santa Rally for Bitcoin and the rest of the crypto market was also strong, but a real price increase failed to materialize.