A popular crypto analyst and trader sees severe downside risks for Bitcoin (BTC) and smart contract platform Fantom (FTM).
Starting with Bitcoin, pseudonymous cryptocurrency analyst Capo tells his 247,700 Twitter followers that the bearish structure of the flagship digital asset is intact despite Bitcoin temporarily managing to rise above the $40,000 mark.
“BTC. Despite this bounce above $40,000, price is still ranging between $33,000 and $45,000. Bearish structure intact.
Main resistance: $45,000 – $46,000
Main target: $21,000 – $23,000.”
Bitcoin is trading at $39,400 at time of writing. A move to Capo’s main target represents a downside potential of over 40% for BTC.
According to Capo, his downside target of around $23,000 for Bitcoin is in line with the 38.20% Fibonacci level when measured from the 2018 bear market low to the 2021 bull market top.
“Here wave C is 1:1 of wave A, matching with the 38.20% retracement of the move from 2018 low ($3,200) to 2021 top ($69,000).”
Next up is Fantom, a smart contract-enabled scalable blockchain. Capo is mapping out a bearish scenario for FTM in the coming months as long as the crypto asset continues to trade below $2.
“FTM update. Targets revised.
First target: $0.60 (expecting bounce from there).
Second target: $0.20 (only if it can’t reclaim the $2 level).”
Fantom is trading at $1.25 at time of writing.
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inboxFeatured Image: Shutterstock/Everyonephoto Studio