A popular cryptocurrency analyst says that Bitcoin, Cardano and the crypto markets at large are likely heading for a significant correction.
The analyst, pseudonymously known as Capo, tells his 148,000 Twitter followers that Bitcoin (BTC) has reached a “local top” and could fall below the $40,000 price level.
“I think BTC is done here… expect a big correction on the entire market in the coming days. Main target for BTC is $38,000. This is a local top [by the way]. Bullish trend will resume after that.”
The crypto analyst and trader believes that Bitcoin’s lower time frame (LTF) bullish market structure (MS) is broken.
“Expecting a lower high dead cat bounce from here, but then further drop to $37,000-$40,000, which would be a very good buy opportunity for the long-term. New ATH will come this year.”
Earlier this month when Bitcoin was trading around $46,000, Capo said the flagship cryptocurrency would rally to $50,000, but then drop to around $40,000-$41,000 before rallying to a new record high.
“50k -> 40k-41k -> consolidation above 50k -> New ATHs”
The crypto analyst also predicts that Cardano (ADA) will fall to around $1.85-$1.90, but that it will likely appreciate by more than five times after the retracement.
“It looks heavy here. Potential correction to $1.85-1.90. Macro view is bullish and it will probably go to $10 or higher this year.”
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Featured Image: Shutterstock/Tithi Luadthong