Crypto assets seemed to be stabilized on Saturday morning, as Bitcoin BTC/USD remained above the $20,000 level, although according to a prominent analyst there's trouble ahead.
What Happened: The pseudonymous crypto analyst Capo has been predicting that the overall cryptocurrency market will see a downfall, and with extreme market conditions, Bitcoin BTC/USD is likely to fall further.
In a recent tweet, he mentioned that he sees no indication that BTC has reached a cycle bottom around the $20,000 level.
Based on what you read on Twitter, you may think that the market is recovering very well. But the charts show:— il Capo Of Crypto (@CryptoCapo_) June 24, 2022
-BTC price below 21k
-Lower highs everywhere
-Hidden bearish divergences everywhere
-No bottom formation
I'm not buying yet.
However, he said he does foresee lower Bitcoin prices and expects the bottom to be reached soon.
This is important.— il Capo Of Crypto (@CryptoCapo_) June 23, 2022
Do I expect another leg down and new lows? Yes.
Is it worth it to short here? No.
Bottom is not in yet, but it is close imo. The moment to open shorts was some weeks ago, not now. Now it's the moment to get ready to buy when the next leg down ends. https://t.co/TGUFwFcaja
Capo shared a chart hypothesizing a correction to below $16,000 is “still in play.”
Last week he warned about the panic in the crypto market and said, “If Bitcoin breaks $20k level, panic could be massive. However, many people have stop losses below this level.”
In March, he warned that Bitcoin was likely to fall 50% from its $44,000 price tag.
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