Crypto Trader Who Predicted Bitcoin Collapse This Year Issues New BTC Warning
The crypto trader and analyst who accurately predicted that Bitcoin (BTC) would crash below $23,000 months before is issuing a new warning about the flagship digital asset.
Pseudonymous crypto strategist Capo says his 480,200 Twitter followers that it is “only a matter of time” before Bitcoin falls to new lows.
In an update to a previous analysis where he had laid out two different scenarios for Bitcoin, Capo says the flagship crypto asset has taken the bearish option that could see the price fall below $21,000. The alternative scenario involved Bitcoin turning bullish in the short term.
“BTC. Other options play out. Any test of $23,500 as resistance is a good selling opportunity. Consolidation below $22,500 (clean break + use level as resistance) would be very bearish = $21,000 or lower. New lows are only a matter of time.”
Bitcoin is trading at $21,158 at the time of writing, down over 7% on the day.
According to Capo, Bitcoin is currently in the fifth wave of the main downtrend, but could correct to the upside in a three-wave pattern to the $23,500 level. Elliott Wave theory states that the main trend of asset prices moves in a five-wave pattern (i, ii, iii, iv, v) while undergoing 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 key $20,000 area.
“Option for the $23,500 Test as Resistance.”
In March, when Bitcoin was trading at around $40,000, the widely followed cryptoanalyst predicted that the flagship crypto asset would fall below $23,000. Bitcoin went on to hit a 2022 low below $18,000 in June.
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