A Crypto Trader Warns of Impending Bearish Trend Reversal for Bitcoin
A well-known crypto trader, Capo, is cautioning that Bitcoin (BTC) might experience a sudden shift in its bullish trend and undergo a bearish reversal in the coming days. In a tweet to his nearly 800,000 followers on X, Capo suggests that Bitcoin could plummet to as low as $30,000.
Capo’s chart analysis relies on the Elliott Wave theory, which posits that an asset’s price follows a five-wave pattern during its main trend and a three-wave pattern during corrections. He predicts that Bitcoin’s fifth wave could propel it to $50,000 before capital rotates into altcoins. However, he also anticipates a subsequent drop to the $30,000 to $31,000 range, which may act as support and potentially trigger a bounce back above $33,000.
An Earlier Prediction and Current Market Conditions
Previously, Capo correctly anticipated that the crypto market would rally following news of the U.S. Securities and Exchange Commission (SEC) approving spot Bitcoin exchange-traded funds (ETFs). He further predicted that this rally would be followed by a bearish reversal and the establishment of new cycle lows.
As of now, Bitcoin is trading at $42,596, experiencing a 7.44% decrease in the last 24 hours.
Hot Take: A Word of Caution for Bitcoin Investors
Capo’s warning about a potential bearish trend reversal for Bitcoin highlights the need for caution among investors. While there is a possibility of Bitcoin reaching $50,000 in the short term and attracting capital towards altcoins, it is crucial to remain vigilant about the potential for a significant price drop to the $30,000 to $31,000 range. Monitoring market conditions and adjusting investment strategies accordingly is essential to navigate potential market volatility.
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