As investors struggle with present financial uncertainties, predictions have grown to be very prevalent in the cryptocurrency market over the past few months. Some are excellent, while others fall short. Since Capo, a pseudonymous trader, forecasted the present market problems, he would seem to be someone to pay heed to. In a recent essay that connected BTC to the rest of the cryptocurrency industry, he offered some insight.
The popular crypto analyst who accurately predicted current market woes is now cautioning investors that Bitcoin (BTC) is likely to fall further.
The pseudonymous trader Capo tells his 409,300 Twitter followers 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:
BTC price below $21,000. Lower highs everywhere. Hidden bearish divergences everywhere. No bottom formation.
I’m not buying yet.”
Capo warned in March Bitcoin was likely to fall 50% from its $44,000 price tag.
The trader next says that while he does foresee lower Bitcoin prices, he also expects the bottom to be reached soon.
“This is important. 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 [in my opinion]. The moment to open shorts was some weeks ago, not now. Now [is] the moment to get ready to buy when the next leg down ends.”
Capo also provides a chart hypothesizing a corection to below $16,000 is “still in play.”
At time of writing, Bitcoin is up 3.51% and trading for $21,241.
When it comes to the broader altcoin market, the analyst shares a chart of the governance token of the decentralized exchange SushiSwap (SUSHI), which he says represents his sentiments on non-BTC crypto assets. He predicts altcoins will eventually lurch upwards but only after prices fall a bit more in the near term.
“One thing is clear: many altcoins are on a bearish parabola.
Parabolas, when broken, cause large corrections (in this case upwards).
The parabolas are not over yet though, but almost.”
Featured Image: Shutterstock/Slava Gerj