The Daily Hodl
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Altcoins
    • Financeflux
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Altcoins
    • Financeflux
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
No Result
View All Result
The Daily Hodl
No Result
View All Result

Crypto Analyst Warns Six Factors Will Drive Bitcoin (BTC) Prices Lower in the Coming Days

by Daily Hodl Staff
May 20, 2022
in Bitcoin

A widely followed crypto analyst is lighting up a tweetstorm, warning traders that Bitcoin (BTC) has six reasons to go lower.

Pseudonymous trader CryptoCapo warns their 315,700 Twitter followers in a six-part thread that there are reasons to believe BTC will hit new lows soon.

“BTC – Some of the reasons why I think we should see new lows in the coming days

1) BTC broke the 30k support zone, which was the main pivot of the bull run. This is a zone, not a level. It’s between $29,000-$31,000, taking all the wicks. Now it’s testing that zone as resistance.”

The trader references a tweet from 10 days ago where he laid out why he didn’t think the $30,000 support level would hold for BTC.

$BTC

Why do I think the 30k level won't hold?

-It has been tested many times, so it's weaker now. This is the 5th test

-There's not enough demand at this level (heatmaps prove this)

-It comes from a deviation from the range high + bear flag

-Selling pressure is still high pic.twitter.com/pTGtsobtqv

— il Capo Of Crypto (@CryptoCapo_) May 10, 2022

Capo’s second reason involves a bear flag signal he referenced in late-April 2022. The trader says the bear flag minimum price level has yet to be reached, another reason to believe BTC will continue lower.

“2) The minimum target of the bear flag hasn’t been reached yet ($23,000). You can also see this on altcoins, where some of the main targets haven’t been reached yet.”

Source: CryptoCapo_/Twitter

CryptoCapo next looks at Bitcoin funding rates, an asset sentiment indicator, explaining why current rates point to a bottom. He tacks on a Bitcoin open interest (OI) chart for support.

“3) Funding rates have remained neutral/positive all the time. For a bottom to form, you want to see very negative funding rates. We haven’t seen that yet.

Also, OI didn’t show a capitulation candle (no big drop on OI).”

Source: CryptoCapo_/Twitter
Source: CryptoCapo_/Twitter

The crypto trader then looks at the Altcoin Perpetual Futures Index (ALTPERP), which tracks the price of a basket of leading altcoins, including Ethereum (ETH).

“4) ALTPERP is in no man’s land. It broke the key level, and the next support is 35-40% lower. This matches with the main targets of most alts and it would make a lot of sense.”

Source: CryptoCapo_/Twitter

Keeping an eye on stocks, Capo says a bearish Standard & Poor’s 500 Index (SPX) combined with a bullish US Dollar Index (DXY) are bad omens for Bitcoin.

“5) SPX and DXY SPX is really bearish. It’s breaking supports like butter, and the bearish trend is getting stronger. Meanwhile, DXY keeps making higher highs and higher lows. It broke the previous highs and it’s using them as support now.”

Source: CryptoCapo_/Twitter
Source: CryptoCapo_/Twitter

Finally, the crypto trader looks at BTC heatmaps, an asset liquidity indicator, as the sixth and final reason why he thinks Bitcoin will reach new lows in the coming days.

“6) Heatmaps look bearish. 

You can clearly see much more supply than demand, and some of the demand is getting weaker/moving lower.

Some examples below.”

Source: CryptoCapo_/Twitter
Source: CryptoCapo_/Twitter

Bitcoin is trading for $29,828 at time of writing.

Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox

Check Price Action

Follow us on Twitter, Facebook and Telegram

Surf The Daily Hodl Mix

Check Latest News Headlines


 
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.

Featured Image: Shutterstock/Digital Store/Chuenmanuse

Submit a Press Release

Industry Announcements

  • BinaryX Launches AI Chat Game ‘AI Hero’ With Limited NFT Mints
    November 28, 2023
  • Binance Labs and BNB Chain Open New Founder-Focused Track To Incubate 100 Early-Stage Projects
    November 24, 2023
  • Socrates Launches Groundbreaking Social Media and Entertainment Platform for Web 3.0 Users Globally
    November 23, 2023
  • GCEX Receives Operational VASP License From Dubai’s Virtual Assets Regulatory Authority
    November 22, 2023
  • Yubo Ruan – Revolutionizing Web 3.0 With a Web 3.0 Super-App
    November 22, 2023
  • De.Fi Sold Out $5 Million Round, OKX, Binance and Coinbase Directors Among Investors – The Sale Is Still Open
    November 20, 2023
  • Sleek, the Web 3.0 Social Network, Raises $5 Million To Power the Ownership Economy
    November 17, 2023
Submit a Guest Post
ADVERTISEMENT
Bitcoin
$37,762.12
$37,762.12
0.83%
Ethereum
$2,032.28
$2,032.28
1.62%
Cardano
$0.38626
$0.38626
0.14%
XRP
$0.607684
$0.607684
0.7%
Dogecoin
$0.081119
$0.081119
0.81%

Spotlight

  • Bitcoin Will Never See Below $30,000 Again if This Pattern Holds True, Says On-Chain Analyst Willy Woo
    November 22, 2023
  • Investor Brian Kelly Says Bitcoin (BTC) Could Be 10x Higher if It Takes Market Share From Gold
    November 22, 2023
  • Trader Unveils Bull Market Price Targets for Bitcoin, Ethereum, Solana and Two Additional Altcoins
    November 22, 2023
  • Bitcoin and Stock Market About To Get ‘Very Explosive,’ According to Analyst Jason Pizzino – Here’s Why
    November 22, 2023
DON'T MISS A BEAT
Crypto headlines delivered daily
to your inbox
BTC, ETH, XRP news alert options
By joining The Daily Hodl news list you agree to our
Terms and Conditions and Privacy Policy.
Featured Image: Shutterstock/Billion Photos

Covering the future of finance, including macro, bitcoin, ethereum, crypto, and web 3.

Categories

Bitcoin • Ethereum • Trading •
Altcoins • Futuremash • Financeflux •
Blockchain • Regulators • Scams •
HodlX • Press Releases

 

ABOUT US | EDITORIAL POLICY | PRIVACY POLICY
TERMS AND CONDITIONS | CONTACT | ADVERTISE

JOIN US ON TELEGRAM

JOIN US ON X

JOIN US ON FACEBOOK

COPYRIGHT © 2017-2023 THE DAILY HODL

No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Altcoins
    • Financeflux
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise

© 2023 The Daily Hodl