New lows are coming for Bitcoin, Ethereum and altcoins, warns an analyst who has predicted a crypto collapse in 2022
A widely followed crypto trader is warning that Bitcoin (BTC) and other altcoins could soon make an abrupt turnaround toward new lows.
Pseudonymous trader and crypto bear Capo shares with his 781,400 followers on the social media platform
“As posted on TG (Telegram) a few days ago, BTC is likely to form a local top of $40,000-$45,000 here. ETH could reach $2,500 and some altcoins could have their final pumps. After that, a complete reversal to new lows is likely in the next few weeks…
I believe there are still new lows ahead before the real bull market begins.”
Source: Capo/X
The trader explains his reasoning in a thread about why “we may still see new lows in the coming months.”
“Let’s start with BTC on HTF (high time frame). We have seen an upward trend in 2023. Many believe that this is the beginning of a new bull market, but in my opinion this is a corrective measure. Now the price is in a major resistance zone. Confirmations are on the chart.”
He uses Elliott Wave Theory, which attempts to predict price movements based on crowd psychology that manifests itself in waves. Elliott Wave Theory suggests that price impulses occur in five waves after three wave “ABC” corrections.
“BTC EW (Elliott Wave) Perspective: The downtrend in 2022 was an impulsive move that broke the 2020-2021 bull market trend. Now the move from the $16,000 low looks like a corrective move (wave B/X). This movement tends to be followed by another impulsive movement (wave C/Y).”
Looking at Ethereum, the trader predicts that ETH could fall as low as $550 after encountering resistance around $2,600.
“[ETH] has broken through a key level and the next major resistance is at $2,500-$2,600. It has a lot of liquidity that should be withdrawn at some point. Bearish confirmation would be a clear break below $2,000-$2,100.”
He expects other altcoins to surge as a result of the inflow of money from Bitcoin sales, which he says often signals that a market correction is imminent.
“Money flows from BTC to altcoins. This usually happens in the latter stages of an uptrend. Some altcoins could pump harder, but the trend is overdone and is coming to an end. If OTHERS (Altcoins index) hits the green zone, we should see a strong correction.”
Check price action
Follow us on Twitter, Facebook and Telegram
Surf the Daily Hodl Mix
Check out the latest headlines
 
Disclaimer: Opinions expressed on The Daily Hodl do not constitute investment advice. Investors should conduct their due diligence before making any risky investments in Bitcoin, cryptocurrencies or digital assets. Please note that your transfers and transactions are at your own risk and any losses you incur are your responsibility. The Daily Hodl does not recommend the purchase or sale of cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl is involved in affiliate marketing.
Generated image: DALLE3
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.