Capo of Crypto, the analyst who correctly predicted the Bitcoin collapse in 2022, made his new statements. The analyst’s Bitcoin comment caught the attention of the crypto community. Here are the details…
Critical Bitcoin comment came from the analyst
In a recent analysis, renowned cryptocurrency analyst Il Capo, known for his accurate bearish predictions, shared his latest perspectives on the market. Despite the upward trend observed in 2023, Il Capo believes that this is not the beginning of a new bull market, but rather a corrective move. The analyst offers several arguments supporting the view that the market may witness fresh declines in the coming months.
Il Capo states that a significant range has formed for Bitcoin between $40,000 and $45,000. Currently facing significant resistance at $45,000, the price must clear this level to surpass the previous high. Il Capo emphasizes that a decline below the key support level at $40,000 could trigger a significant decline from the $30,000 to $31,000 low.
December 29 is important as the expiration date of options
Il Capo suggests that a significant option with a face value of $7.7 billion will expire, scheduled for December 29. The order walls are exactly aligned with the current short-term support and resistance levels ($40,000 and $45,000). The maximum loss price falls within the main support zone between $30,000 and $33,000. Il Capo also argues that the Bitcoin rally in 2023 is “unnatural.” To this end, it offers the following four items:
- Prices are artificially inflated
- The 2022 bear market wave was reactive
- Similar patterns exist between altcoins and indices
- Key trends: ETFs and Bitcoin halving
Il Capo recognizes the potential benefits of ETFs in facilitating market entry of significant institutional and retail capital over the medium and long term. But in the short term, he warns, ETFs could lead to a downturn, triggering or delaying a “news sell-off event.” Although the Bitcoin halving is a bullish event, it may not prevent strong pullbacks before they happen. Il Capo also suggests that a global recession may be on the horizon. Even if the Fed backs down, prolonged periods of high interest rates have historically signaled the beginning of a significant correction in the stock market.
Funds are moving from BTC to altcoins
Il Capo concludes by noting the migration of funds from BTC to altcoins, a phenomenon often observed in the final stages of an uptrend. The cryptocurrency market remains on edge as uncertainties emerge and investors are advised to closely monitor key support and resistance levels in the coming weeks.
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