A popular crypto strategist is predicting that Bitcoin (BTC) will bounce significantly before hitting lows last seen in 2020.
Pseudonymous crypto analyst and trader Capo tells his 506,100 Twitter followers that Bitcoin could rally by around 24% from the current support area to form the head-and-shoulders trend reversal pattern.
“BTC
First of all, price is right now sitting above major daily support (range low, $18,500 – $19,000). It’s where the last bear market rally started, indicating there’s strong demand here. A bounce from here to the supply zone ($22,500 – $23,000) would form a perfect Head and Shoulders.”
According to Capo, Bitcoin’s support area around $18,500 is likely to withstand downward pressure due to weakening volume and momentum.
“Volume and momentum are dying. Every leg down is weaker, meaning there’s not enough strength to break that support.”
The widely-followed crypto trader and analyst says that his short-term bullish thesis will be confirmed when Bitcoin breaks above $19,200 and invalidated if the flagship crypto asset falls below $18,500.
“First confirmation for this short-term bullish scenario would be a clean break of $19,200, and second confirmation a reclaim of $19,600.
Invalidation: consolidation below $18,500.”
Bitcoin is trading at $18,737 at time of writing.
Capo has previously said that after hitting the short-term bullish target of $23,000, Bitcoin could reverse to 22-month low of around $16,000.
“Same idea: $23,000, $16,000″
Featured Image: Shutterstock/Jorm S