A popular crypto analyst and trader thinks Bitcoin (BTC) is primed for another price dip before bouncing back.
The analyst pseudonymously known as Capo tells his 236,900 Twitter followers that he thinks Bitcoin will wick downward under $30,000 before recovering.
BTC is trading at $36,215.46 at time of writing and is down more than 14% in the past week and more than 27% in the past month.
Capo, however, believes that if Bitcoin consolidates below $30,000, the bull market is officially over.
“IF it consolidates below $30,000, it’s over. Consolidation means clean high timeframe close below this level, or a break + flip from support to resistance.
Right now I bet for a bounce from there, after a wick below $30,000.”
Looking at the analyst’s chart, it appears that Bitcoin is following the market structure of the S&P500 from 1999 to 2009 on the two-week timeframe. Should BTC follow the script, a move below $30,000 puts Bitcoin in a position to rally to fresh all-time highs.
The analyst notes that a lot of supply has been added on Binance futures, which contributes to his belief that Bitcoin is headed down below $30,000.
“They just added a lot of supply on Binance futures… sub $30,000 incoming in my opinion.”
Capo says that 80% of his portfolio is now in the dollar-pegged stablecoin Tether (USDT). He believes the sub-$30,000 prediction will be invalidated if Bitcoin consolidates above $41,000.
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Featured Image: Shutterstock/prodigital art/Natalia Siiatovskaia
Source: https://dailyhodl.com/2022/01/25/popular-trader-predicts-one-more-bitcoin-dip-before-epic-rally-heres-his-bottom-target-for-btc/