A popular analyst and trader who accurately predicted Bitcoin (BTC) would collapse by up to 50% when it was trading at over $40,000 in March is now warning of new crypto market lows.
Pseudonymous crypto analyst Capo tells his 535,000 Twitter followers that once the brief crypto bounce has ended, a major capitulation could occur.
“When this bounce is over, make sure you protect your capital, because the dump could be epic.
The big bearish hammer pattern is waiting.”
The entire crypto market cap has risen modestly by about 4% to about $975 billion at time of writing from the two-month low of approximately $940 billion hit last week.
On Bitcoin, Capo says that two scenarios could play out – both of which would see Bitcoin fall by nearly 30% from current levels. Bitcoin is trading at $19,437 at time of writing.
“BTC – The only chart you need
2 possibilities:
-Quick scam pump to $20,000 – $20,500 and nuke afterwards.
-Clean break of the $18,400 – $18,700 support and straight dump to the main target.
Both possibilities lead to the same target of $14,000 – $16,000.”
According to the popular crypto analyst, Bitcoin is in the process of completing a bearish head and shoulders pattern, whose formation started in June when the leading cryptocurrency briefly broke below $18,000 for the first time in 2022.
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