The strategist who pulled off the Bitcoin downturn in 2022 issues another warning to crypto traders Cryptocurrency
Analyst Who Correctly Called Bitcoin’s Collapse This Year Warns BTC holders, saying a sellout event for the crypto king is in sight.
The pseudonymous analyst known in the industry as Capo tells his 692,200 Twitter followers that Bitcoin continues to show signs of weakness.
While Bitcoin bulls managed to trigger a rally from the current bear market low of around $15,700, Capo says the recent rebound is significantly weaker compared to BTC’s previous surges since June.
“Every rebound is smaller. Lower lows and lower highs. Support becomes resistance. $12,000 is like a magnet.
At the time of writing, Bitcoin is changing hands for $16,840. A move to Capo’s $12,000 target indicates a decline of more than 28% for the crypto king.
capo too said that traders are probably unprepared for the drastic drop.
“Just read the comments here and you’ll get a second confirmation (first is analysis and indicators) that most people are trapped above $17,000 or more and couldn’t take another drop. As I As I said before, most people are unprepared for what’s to come and it shows.
He adds that the current crypto and stock market trading environment appears to create a “perfect scenario for a proper capitulation.”
“Stock market is bleeding, altcoins are breaking major supports, indicators are pointing down, bulls are getting euphoric and arrogant for small pumps.”
Turning to the equity market, Capo says the S&P 500 (SPX) remains in a downtrend after meeting its diagonal resistance.
“Clear new bearish test. Downtrend intact.
Traders are keeping an eye on the performance of the SPX as a weak index suggests investors remain wary of risky assets like stocks and crypto.
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Feature image: Shutterstock/Roman Sakhno
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