A closely watched crypto strategist and trader has warned Bitcoin investors that an imminent and sharp drop for BTC is on the horizon.
Popular crypto analyst Capo told his 260,200 Twitter followers that Bitcoin’s current market structure on the four-hour chart is similar to price action during the March 2020 pandemic-induced crash. “Similarities with the trend change before the Covid crash,” he said on April 20. made his statement on April 21. in update added:
“More similarities.”
The crypto strategist also highlighted that he is relying on Bitcoin’s cross support, which has kept BTC above $30,000 so far this year. However, he predicts that BTC will break the bullish line and correct up to $21,000.
— il Capo Of Crypto (@CryptoCapo_) April 22, 2022
Capo also said that he closely monitors BTC’s order books on various digital asset exchanges to monitor demand and supply for the leading crypto asset. According to Capo, large buy orders were withdrawn from Deribit, increasing the likelihood of a correction.
“Deribit has withdrawn all bids between $29k and $34,000, keeping the price in range. Below $30,000 is more likely now.”
The trader added that the same is the case with Bitfinex.
“Bitfinex did the same. The bid block between $36,600 and $37,800 is gone.”
Capo, who also examines the crypto derivatives exchange FTX, said he has seen signals pointing to an increase in BTC’s sell-side pressure.
“Also, exchanges like FTX add too much supply, pushing the price down. Sales pressure is high.”
You can check the price movements here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, KoinFinans and the author of this content cannot be held responsible for personal investment decisions.