An analyst who rightly called the fall of Bitcoin this year is warning BTC holders that a capitulation event is in sight for the king of crypto.
The pseudonymous analyst known in the industry as Capo tells his 692,200 Twitter followers that Bitcoin continues to show signs of weakness.
While Bitcoin bulls have been able to bounce back from the current bear market lows around $15,700, Capo says the latest bounce is significantly smaller than BTC’s previous surge since June.
“Every ball is small. Low low and low high. Support turns into resistance. $12,000 is like a magnet.
At the time of writing, Bitcoin is changing hands for $16,840. Capo’s move to the $12,000 target marks a decline of over 28% for the crypto king.
Capo too says That traders are probably not prepared for a sharp decline.
“Just read the comments here and you’ll get the second confirmation (the first is analysis and indicators) that most people are above $17,000 or higher and can’t take another cut. As I said before, most people what Not ready for that to come and show it.”
that adds That the current trading environment in crypto and the stock market seems to create “the perfect scenario for a perfect capitulation.”
“Stock market hemorrhaging, altcoins breaking key support, indexes down, bulls happy and reluctant to pump small.”
Looking at the equity market, Capo says the S&P 500 (SPX) remains in the lows after respecting its diagonal resistance.
“Clear bearish review. Downtrend continues.”
Traders are keeping an eye on SPX performance as a weak index suggests investors remain wary of risk assets such as stocks and cryptos.
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Disclaimer: The views expressed in Daily Huddle do not constitute investment advice. Investors should do their due diligence before investing in Bitcoin, cryptocurrency or digital assets with high risk. Please note that your shipping and trading is at your own risk, and any damage you incur is your responsibility. Daily Hodl does not recommend the purchase or sale of any cryptocurrencies or digital assets, nor is Daily Hodl an investment advisor. Please note that Daily Hodl participates in affiliate marketing.
Featured image: Shutterstock/Roman Sakhno