Pseudonymous crypto trader Capo says that Bitcoin BTC/USD is poised to hit a new 52-week low as another sell-off event is insight.
The prediction comes as the crypto market is showing signs of weakness, and as Bitcoin has managed to trade above $28,400, slightly higher than its 52-week low of $26,910.
Capo has warned that the support area around $28,000 is flashing signs of demand exhaustion, as BTC has revisited the price level six times quickly.
“Almost the entire market except BTC has made a new low after yesterday’s bounce, showing that it was a bull trap. BTC new low incoming,” he said.
Once Bitcoin takes out its immediate support, Capo predicts a sharp decline to his bear market target of between $21,000-$23,000.
Earlier this month, the crypto strategist accurately predicted that Bitcoin would take out the key psychological price level of $30,000.
$BTC— il Capo Of Crypto (@CryptoCapo_) May 10, 2022
Why do I think the 30k level won't hold?
-It has been tested many times, so it's weaker now. This is the 5th test
-There's not enough demand at this level (heatmaps prove this)
-It comes from a deviation from the range high + bear flag
-Selling pressure is still high pic.twitter.com/pTGtsobtqv
Capo said, “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 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,” he added.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.