Analyst Who Called This Year’s Crypto Crash Issues BTC Warning, Says Bitcoin Collapse Imminent

The crypto strategist who pulled off this year’s crypto meltdown is issuing an urgent warning to Bitcoin (BTC) bulls.

Pseudonymous crypto trader Capo tells his 579,600 Twitter followers that Bitcoin traders should start treading carefully as he says BTC is now trapping as much bull as possible.

Capo says that after Bitcoin’s last surge above $21,000, the king of crypto has now reached a price zone where smart money investors are likely to take profits and push BTC to new 2022 lows.

“As I have said many times, $21,000 to $21,500 is the hammer zone (distribution zone). The distribution phases are made to trap as many longs as possible while destroying the first shorts. This means multiple pushes into the resistance zone, which strong hands use to continue building their position.

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Source: Capo/Twitter

Based on the chart, the analyst appears to predict that the distribution above $21,000 would trigger a sell event that would push Bitcoin all the way to its target at $14,000, suggesting a decline of over 34% for the top. crypto by market cap.

Although Capo has a bearish view on Bitcoin, the chart also shows that his thesis would be invalidated if BTC manages to rally and consolidate around $23,000.

For now, Capo says he is waiting for confirmation signals before shorting Bitcoin.

“I’m no longer bullish on BTC, but I’m also not selling until I see bearish signs (until the distribution is complete). A final push to $21,400-$21,500 is possible and you don’t want to sell here without bearish confirmation.

At the time of writing, Bitcoin is changing hands for $21,377, up over 5% in the last 24 hours.

Capo then takes the altcoins, saying he remains bullish on crypto assets other than Bitcoin at this time.

“I’m still bullish on altcoins but cautious (lagging SL [stop loss] in profits). I will turn completely bearish soon.

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Feature image: Shutterstock/Tithi Luadthong

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