The crypto trader and analyst who accurately predicted that Bitcoin (BTC) would crash below $23,000 months prior is issuing a fresh warning on the flagship digital asset.
Pseudonymous crypto strategist Capo tells his 480,200 Twitter followers that it’s “just a matter of time” before Bitcoin falls to new lows.
[adinserter block="1"]In an update to an earlier analysis where he had laid out two differing scenarios for Bitcoin, Capo says that the flagship crypto asset has taken the bearish option that could lead to the price dropping below $21,000. The alternative scenario involved Bitcoin turning bullish over the short term.
“BTC. Second option playing out. Any test of $23,500 as resistance is a good sell opportunity. Consolidation below $22,500 (clean break + use the level as resistance) would be very bearish = $21,000 or lower. New lows are just a matter of time.”
Bitcoin is trading at $21,158 at time of writing, down over 7% on the day.
According to Capo, Bitcoin is currently in the fifth wave of the main downward trend but could correct to the upside in a three-wave pattern to the $23,500 level. The Elliott Wave theory states that the main trend of asset prices moves in a five-wave pattern (i, ii, iii, iv, v) while they undergo a correction in a three-wave pattern (a, b, c).
The crypto strategist says that $23,500 would act as strong resistance pushing Bitcoin towards the $20,000 key area.
“Option for the $23,500 test as resistance.”
In March when Bitcoin was trading at around the $40,000 mark, the widely followed crypto analyst predicted that the flagship crypto asset would fall to under $23,000. Bitcoin went on to hit a 2022 low of under $18,000 in June.
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