A widely respected cryptocurrency trader has warned that Bitcoin (BTC) and other altcoins could soon create a sudden trend reversal towards new lows.
Capo, pseudonym trader and cryptocurrency bear says The 781,400 followers on social media platform
“As posted on TG (Telegram) a few days ago, BTC is probably forming a local high around $40,000-$45,000. ETH could reach $2,500 and some alternatives may have their last pump. After that, a complete reversal to new lows is likely over the next few weeks…
I still believe there will be new lows before the real bull market begins.”
The trader explains his reasoning. line It explains why “we could still see new lows in the coming months.”
“Let’s start with BTC at HTF (high period). We see a bullish trend in 2023. Many people think this is the start of a new bull market, but in my opinion, this is a corrective move. Now the price is in a major resistance area. “There’s confirmation on the chart.”
that Usage Elliott Wave Theory, which attempts to predict price movements based on crowd psychology expressed in waves. Elliott Wave Theory suggests that price impulses occur in the fifth wave following a three-wave “ABC” correction.
“BTC EW (Elliott Wave) Perspective: The bearish trend of 2022 was an impulsive move that broke the bullish trend of 2020-2021. The move from the $16,000 low now looks like a corrective move (B/X wave). This movement tends to be followed by another impulsive movement (wave C/Y).”
Looking at Ethereum as a trader predict ETH could fall as low as $550 after facing resistance around the $2,600 level.
“(ETH) has broken a key level and the next major resistance is $2,500-$2,600. There is a lot of liquidity down there and you will eventually have to take it. A bearish confirmation would be a complete break below $2,000-$2,100.”
that proposal Other altcoins are surging on the influx of funds from Bitcoin sales, which often means a market correction is on the horizon, he says.
“Money is flowing from BTC to altcoins. This usually occurs during the final stages of a bullish trend. Some altcoins can pump more, but the trend is overextended and has reached its end. If OTHERS (altcoin index) reaches the green zone, we will see a strong correction.”
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