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.
Nothing bullish here. That support will not hold for long. pic.twitter.com/dXHuG9E9IJ
– il Capo Of Crypto (@CryptoCapo_) May 27, 2022
“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 its bear market target of between $ 21,000- $ 23,000.
Also Read: Billionaire Mike Novogratz Says Bitcoin Will Lead Next Rally: Here’s Why
Earlier this month, the crypto strategist accurately predicted that Bitcoin would take out the key psychological price level of $ 30,000.
Why do I think the 30k level will not 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
– il Capo Of Crypto (@CryptoCapo_) May 10, 2022
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 its bear market target.
“The minimum target of the bear flag has not yet reached $ 23,000. You can also see this on altcoins, where some of the main targets have not been reached yet, ”he added.