Trader Who Called 2022 Bitcoin Collapse Details Crypto Outlook When FOMC Meeting Arrives
An experienced trader known for calling the last major Bitcoin (BTC) collapse this year predicts an imminent relief rally ahead of Wednesday morning’s Federal Open Market Committee (FOMC) meeting.
The pseudonymous trader known as Capo tells his 525,000 Twitter followers that he expects Bitcoin and the crypto markets to rally leading into the rally and eventually break down again to continue the downtrend.
“Good morning.
Expect a fraud pump before the FOMC and continuation of the downtrend afterwards. How high could it go? First target would be 20,300-20,600. If it breaks that level, we could see 22,800-23,000.
Remember that every bounce is a brief opportunity.”
Officials at the FOMC are expected to raise interest rates again, potentially putting more pressure on risk assets like cryptocurrencies. A “fraud pump” in crypto refers to a burst of volatility, often in the opposite direction of the trend before reversing after it traps or “frauds” traders.
Capo reiterates that after a sudden rally, he gives a downside target somewhere in the ballpark of $14,000 to $16,000, or up to 27% away from current prices.
“BTC plan.”
Outside of Bitcoin, the closely followed analyst is also looking at the altcoin market for “massive” selling opportunities.
says Capo,
“After this bounce, I will look for massive shorts on altcoins.”
At the time of writing, Bitcoin is trading at $19,284, down 72% from all time. A drop to Capo’s lowest target of $14,000 would represent a full 79.8% correction from the all-time high of $69,000.
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Featured image: Shutterstock/sergeymansurov/INelson
