A popularly known and closely followed crypto strategist, Capo, is seen warning the Bitcoin traders and investors that the world’s first cryptocurrency by market cap is about to enter a sharp correction phase soon.
The cryptic analyst, Capo informs his 260,200 Twitter followers that on the four-hour chart, Bitcoin’s current market structure mirrors the March 2020 price action which was a pandemic induced crash
The crypto strategist is of the opinion that Bitcoin is leaning towards its diagonal support which has held Bitcoin price above $30,000 so far this year.
Nevertheless, Capo also believes that Bitcoin will violate the uptrend phase and correct itself bottoming towards $21,000.
On the other hand, after watching Bitcoin’s order books on various digital asset exchanges in order to understand the demand and supply for Bitcoin, Capo puts forths his prediction that huge orders were dragged out of Deribit.
This move has increased the chances for correction. He quotes,
“Deribit pulled all the bids that were between $29k and $34k, holding the price within the range. Sub $30k is more likely now.”
Capo also talks about Bitfinex and says that
“Bitfinex just did the same. The block of bids between $36,600 and $37,800 is gone.”
The next he talks about is the FTX, a derivative exchange, where Capo says that he is foreseeing the signals which are pointing towards an increased sell-side pressure for Bitcoin.
“Also, exchanges like FTX are adding a lot of supply, pushing the price down. Selling pressure is high.”
At the time of writing, Bitcoin is changing hands at $39,447 with a downfall of 0.23% over the last 24hrs. Since the start of the day the flagship currency is hovering between $38,000 and $39,000 struggling hard to reclaim $40,000 range
Was this writing helpful?