A closely tracked crypto strategist and trader is warning Bitcoin holders that BTC is poised to hit a new 52-week low.
Pseudonymous trader Capo tells his 322,300 Twitter followers another sell-off event is in sight for Bitcoin as the crypto markets continue to show signs of weakness.
“Almost the entire market except BTC has made a new low after yesterday’s bounce, showing that it was in fact a bull trap. BTC new low incoming.”
Over the last seven days, Bitcoin has managed to trade above $28,400, slightly higher than its 52-week low of $26,910. However, Capo warns that the support area around $28,000 is flashing signs of demand exhaustion as BTC has revisited the price level six times in a short amount of time.
“Nothing bullish here. That support won’t hold for long.”
Once Bitcoin takes out its immediate support, Capo predicts a sharp decline to his bear market target of between $21,000-$23,000.
“BTC.”
Earlier this month, the crypto strategist accurately predicted that Bitcoin will take out the key psychological price level of $30,000 and unveiled his thesis on why believes BTC is likely set to print to a new yearly low.
“BTC – Some of the reasons why I think we should see new lows in the coming days:
BTC broke the $30,000 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.”
Capo also highlights that Bitcoin has broken down from a bear flag and is now en route to his bear market target.
“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.”
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
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/Krit Suppaudom
