A closely tracked crypto strategist and trader is warning Bitcoin investors that an imminent and sharp downturn for BTC is on the horizon.
Popular crypto analyst Capo tells his 260,200 Twitter followers that Bitcoin’s current market structure on the four-hour chart resembles its price action during the March 2020 pandemic-induced crash.
“More similitudes.”
The crypto strategist also highlights that Bitcoin has been relying on its diagonal support that has kept BTC above $30,000 so far this year. However, he predicts that BTC will violate the uptrend line and correct all the way down to $21,000.
Capo also says he’s closely watching BTC’s order books on various digital asset exchanges to track the demand and supply for the leading crypto asset. According to Capo, massive buy orders were pulled out of Deribit, increasing the likelihood of a correction.
“Deribit pulled all the bids that were between $29k and $34k, holding the price within the range. Sub $30k is more likely now.”
He adds that it’s the same case on Bitfinex.
“Bitfinex just did the same. The block of bids between $36,600 and $37,800 is gone.”
Looking at crypto derivatives exchange FTX, Capo says that he’s seeing signals pointing to an increase in the sell-side pressure of BTC.
“Also, exchanges like FTX are adding a lot of supply, pushing the price down. Selling pressure is high.”
At time of writing, Bitcoin is exchanging hands for $38,974, down 1.46% in the last 24 hours.
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