The Bitcoin (BTC) bull market is in imminent danger, according to the crypto expert who predicted this year’s crypto collapse.
Crypto trader Capo warns his 579,600 Twitter followers to proceed with care since Bitcoin (BTC) is now in the process of catching as many bulls as possible.
After Bitcoin’s recent climb over $21,000, Capo claims the king cryptocurrency has entered a price range where smart money investors are likely to take gains, sending BTC to new lows for 2022.
“I’ve stated it before, but $21,000 to $21,500 is the sweet spot (distribution zone). The purpose of the distribution phase is to eliminate early shorts and capture as many longs as feasible. This necessitates repeated forays into the zone of greatest opposition, where only the most tenacious of hands may hope to get a foothold.”
The analyst seems to be predicting, based on the chart, that a distribution over $21,000 would cause a sell-off event that takes Bitcoin all the way down to his objective of $14,000, representing an almost 34% downside for the leading crypto by market value.
Capo is gloomy about Bitcoin, but the chart suggests that if BTC is able to rise and consolidate around $23,000, his thesis will be proven false.
Capo claims he is holding off on shorting Bitcoin for the time being in order to wait for more confirmation signs.
“I’m no longer optimistic about Bitcoin’s price, but I won’t sell any until I see adverse indicators (until the distribution is complete). You shouldn’t short here without seeing bearish confirmation since there’s still a chance of one final surge to $21,400 to $21,500.”
Bitcoin has gained almost 5% in the previous 24 hours and is now trading at $21,377. Capo then goes on to discuss other cryptocurrencies, noting that he is still positive on crypto assets despite Bitcoin’s recent decline. The phrase “I’m still positive about altcoins but being cautious” comes from the author.
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