Strategist Who Predicted 2022 Bitcoin Downturn Issues Fresh Warning To Crypto Traders

An analyst who correctly called bitcoin’s collapse this year is warning BTC holders, saying a capitulation event is in sight for the king crypto.

The pseudonymous analyst known as Capo told his 692,200 Twitter followers that bitcoin is showing signs of weakness.

While bitcoin bulls have managed to ignite a rally from the current bear market lows of $15,700, Capo says the recent surge pales in comparison to BTC’s previous surge since June.

“Every bounce is short. Lower lows and lower highs. Support becomes resistance. $12,000 is like a magnet.”

source: capo/twitter

At the time of writing, bitcoin is changing hands for $16,840. Capo’s move towards the $12,000 target indicates a downside risk of over 28% for King Crypto.

capo too They say That traders are not ready for a huge drop.

“Just read the comments here and you’ll find another confirmation (the first is analysis and indicators) that most people are stuck above $17,000 or so and can’t take another drop. As I said before, most people expect things to come. Are not ready and it shows.

He connects The current trading environment in crypto and the stock market is creating “the perfect scenario for a reasonable surrender”.

“Stocks are bleeding out, altcoins are breaking key support, indicators are pointing to the downside, bulls are getting euphoric and cocky for short puts.”

Looking at equity markets, Capo says the S&P 500 (SPX) remains in a downtrend after honing its diagonal resistance.

“Retest bearish. Downtrend continues.

source: capo/twitter

Traders keep an eye on the performance of the SPX as a weak index suggests that investors are wary of riskier assets like stocks and cryptos.

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Disclaimer: The views expressed in The Daily Hoddle do not constitute investment advice. Investors should conduct due diligence before making any high-risk investments in bitcoin, cryptocurrency or digital assets. Please be aware that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hoddle does not recommend the purchase or sale of any cryptocurrency or digital asset, nor is The Daily Hoddle an investment advisor. Please note that The Daily Hoddle participates in affiliate marketing.

Featured Image: shutterstock/Roman Sakhno

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