A prominent crypto strategist and trader predicts that Bitcoin is about to enter a parabolic second phase of the bull market and that something similar could be in store for Ethereum.

Widely followed crypto analyst Kaleo tells his 338,900 followers that the second chapter of Bitcoin’s bull run will push BTC well above six figures.

“Bitcoin/BTC

Even better.”

Kaleo’s prediction of Bitcoin’s parabolic rise to $200,000 follows the script of BTC’s 2017 bull market where the leading cryptocurrency rose from just $2,000 to $20,000 in a span of five months.

“Bitcoin/BTC

Something like this.”

Kaleo’s prediction comes as Bitcoin abruptly rallied from a low of $29,360 to a high of $40,499 in less than seven days. Although the leading crypto asset has managed to put together six consecutive green candles on the daily chart, Kaleo issues a warning to traders who are planning to use leverage to catch up.

“I’m sharing this because I have a feeling there are a bunch of late bulls that have extreme FOMO (fear of missing out) atm (at the moment) and are trying to overleverage to compensate. Just be patient and continue to stack. BTC is going to $100,000+ either way. Don’t let greed knock you down right before it happens.”

Looking at Ethereum (ETH), the crypto trader believes the leading smart contract platform is now poised to restart its bullish trend.

“Ethereum/ETH The bottom is in.”

Last week, when Ethereum was trading at $1,870, Kaleo said the leading smart contract platform could be mirroring its 2017 price action when ETH meteorically rose from $200 to its 2018 high of $1,440. According to Kaleo, he sees Ethereum igniting a similar rally en route to a new all-time high of $18,000 by July 2022.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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A high-profile crypto trader and analyst is optimistic about the futures of two altcoins as Bitcoin (BTC) and the crypto market gain momentum.

In a series of tweets, the pseudonymous trader, known in the industry as Kaleo, says that he is building positions in Dapper Labs’ non-fungible token (NFT) project, Flow.

Kaleo says Flow is on the edge of sharply outperforming Bitcoin, as NFT and gaming tokens such as Axie Infinity (AXS) are gaining major attention in the market.

“I punted a long on FLOW. I’ve missed out on the majority of the NFT pumps led by AXS and decided I finally needed some exposure.

The BTC chart is breaking out above higher time frame resistance dating back to the spring rally, where it was one of the leaders in the NFT race.”

On the USD base pair, Kaleo was initially hesitant to add to his position as FLOW battled with resistance on the lower timeframe at $20.96. Now Kaleo says that he’s adding to his FLOW position, as the asset dipped slightly toward $19.95, allowing for a better entry.

“Added more FLOW on the dip.”

The other asset Kaleo is trading as the market recovers is blockchain network Terra Luna (LUNA).

Against USD, Kaleo charts out LUNA forming an ascending wedge, preparing to breakout above $8.

Luna is currently trading at $9.42, up nearly two dollars since Kaleo started tweeting about the asset.

As Bitcoin trades at around $38,000, Kaleo reminds his 338,000 followers that in February, when Bitcoin traded at around $30,000, the top cryptocurrency took just one week to sail above $47,000.

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The CSI 300 Index, which tracks the top 300 companies in the Shanghai and Shenzhen stock exchanges, fell another 3.2% today while the Hang Seng Index plunged 4.1%.

“I see panic selling in the market now as investors are pricing in a possibility that Beijing will tighten regulation on all sectors that have seen robust growth in recent years,” said Castor Pang, head of research at Core Pacific Yamaichi. “I don’t think investors can do any bottom fishing at this point. We don’t know where the bottom is.”

CNY has dropped against the dollar, down from 6.38 CNY per USD back in May to now nearing 6.5 CNY as the US economy recovers while China moves towards money easing in some ways.

In other ways, Shanghai increased mortgage rates for first-time buyers to 5% from 4.65% and for non-first-time buyers to 5.7% from 5.25%, leading to a cool down in the property market.

Something that may have contributed to trouble at Evergrande, the property giant that saw its stock plunge after a court froze $20 million.

Debt in China is nearing 300% of GDP and the majority of it is in corporate bonds with defaults increasing.

“China is going after the core of its new entrepreneurial driven economy, and it’s going after their business models,” says Stephen Roach, an expert in the economic interrelations between China and US having worked at a high level in the private sector at both countries.

Hedge fund manager Anthony Scaramucci has called it a “Tiananmen Square moment for capitalism” in China, while BlackRock starts moving:

“Monetary and fiscal policy tightening is just one aspect of China’s overall hawkish policy stance, the other two being measures to stabilise property price increases and an antimonopoly clampdown,” BlackRock strategists including Wei Li said in a report last week.

UBS is getting out as the Chinese Communist Party risks for the first time facing the market:

“We are shifting our tactical stance on offshore Chinese equities to neutral within our Asia strategy, given the extent of recent regulatory action against technology companies,” Mark Haefele, chief investment officer at UBS Wealth Management, said in a report to clients on July 20.

The big question in everyone’s mind is whether this is just a blip or the start of a clash between the market and the Party which might be a catalyst for a full blown financial crisis in China due to fears of contagion.

There’s already a flight to safety with government bonds in China dropping amid this uncertainty and confusion.

A $600 billion tech sell off is just some of the money on the move, with some of it presumably making their way to cryptos as a hedge against the banking system which may well come under pressure if corporate defaults continue to increase.

Under these circumstances, ‘retail’ investors in China probably don’t care what the Party says, nor in Shanghai, as some of them run for the exit.

Thus while China’s morning time is shared with much of Asia, it may be China specifically that is contributing to bitcoin’s rise as the word panic starts being thrown around.

But this might be contained from a full blown crisis. However, if confidence continues to be shaken and big investors keep moving, we might see a reshuffling of sorts with bitcoin potentially one big gainer.