The Strategist Who Nailed Bitcoin’s 2022 Slowdown Issues New Warning to Crypto Traders

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

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 managed to trigger a rally from the current bear market low of around $15,700, Capo says the recent rebound is significantly weaker compared to BTC’s previous surges since June.

“Every rebound is smaller. 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. A move to Capo’s $12,000 target indicates a decline of more than 28% for the crypto king.

capo too said that traders are probably unprepared for the drastic drop.

“Just read the comments here and you’ll get a second confirmation (first is analysis and indicators) that most people are trapped above $17,000 or more and couldn’t take another drop. As I As I said before, most people are unprepared for what’s to come and it shows.

He adds that the current crypto and stock market trading environment appears to create a “perfect scenario for a proper capitulation.”

“Stock market is bleeding, altcoins are breaking major supports, indicators are pointing down, bulls are getting euphoric and arrogant for small pumps.”

Turning to the equity market, Capo says the S&P 500 (SPX) remains in a downtrend after meeting its diagonal resistance.

“Clear new bearish test. Downtrend intact.

Image
Source: Capo/Twitter

Traders are keeping an eye on the performance of the SPX as a weak index suggests investors remain wary of risky assets like stocks and crypto.

Don’t miss a beat – Subscribe to receive crypto email alerts straight to your inbox

Check Price Action

follow us on TwitterFacebook and Telegram

Surf the Daily Hodl Mix

Check the latest news headlines

&nbsp

Disclaimer: Opinions expressed on The Daily Hodl are not investment advice. Investors should do their due diligence before making high-risk investments in Bitcoin, cryptocurrency or digital assets. Please note that your transfers and transactions are at your own risk and any loss you may incur is your responsibility. The Daily Hodl does not recommend the buying or selling of cryptocurrencies or digital assets, nor is The Daily Hodl an investment adviser. Please note that The Daily Hodl engages in affiliate marketing.

Feature image: Shutterstock/Roman Sakhno

Leave a Comment