A extensively adopted crypto dealer is warning that Bitcoin (BTC) and different altcoins may quickly make an abrupt pattern reversal towards new lows.
Pseudonymous dealer and crypto bear Capo tells his 781,400 followers on the social media platform X that Bitcoin may quickly revisit the low $30,000s and convey a sudden market correction to alts after they rally yet another time.
“As posted on TG (Telegram) a couple of days in the past, BTC might be forming a neighborhood high right here at $40,000-$45,000. ETH may attain $2,500s, and a few alts may have the final pumps. After this, a full reversal to new lows is probably going over the subsequent few weeks…
I imagine new lows are nonetheless to return earlier than the true bull market begins.”
The dealer elaborates on his reasoning in a thread about why “we would nonetheless see new lows over the approaching months.”
“Let’s begin with BTC on HTF (excessive timeframe). Now we have seen a bullish pattern throughout 2023. Many suppose that that is the beginning of a brand new bull market, however for my part, this can be a corrective transfer. Now the value is at a serious resistance zone. Confirmations are on the chart.”
He makes use of the Elliott Wave concept, which makes an attempt to forecast worth actions primarily based on crowd psychology that’s manifested in waves. The Elliott Wave concept means that worth impulses occur in 5 waves after three-wave “ABC” corrections.
“BTC EW (Elliott Wave) perspective: the bearish pattern throughout 2022 was an impulsive transfer that broke the 2020-2021 bull market pattern. Now, the transfer from the $16,000 low seems to be like a corrective transfer (wave B/X). This transfer tends to be adopted by one other impulsive transfer (wave C/Y).”
Taking a look at Ethereum, the dealer predicts that ETH may decline as little as $550 after going through resistance at across the $2,600 stage.
“[ETH] has damaged a key stage and the subsequent main resistance is $2,500-$2,600. It has a variety of liquidity beneath that ought to be taken finally. The bearish affirmation can be a clear break beneath $2,000-$2,100.”
He suggests different altcoins are surging from an influx of cash from Bitcoin gross sales, which he says typically signifies a market correction is coming quickly.
“Cash is flowing from BTC to altcoins. This often occurs over the last phases of a bullish pattern. Some altcoins may pump extra, however the pattern is overextended and reaching to an finish. When OTHERS (altcoins index) reaches the inexperienced zone, we should always see a powerful correction.”
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