A widely followed cryptocurrency analyst warned traders in a thread of tweets that he has six reasons for Bitcoin (BTC) to drop. Here are CryptoCapo’s predictions…
The analyst explained that the decline in Bitcoin price will continue for 6 reasons
As we have previously reported as cryptokoin.com , various crypto CryptoCapo, who is described as the “Altcoin prophet” with his money predictions coming true; In a six-part title, he explains why he believes Bitcoin will see lower levels. The trader primarily refers to a tweet from 10 days ago and states that he does not think that the $30,000 support level is valid for BTC at this point, and that the coin is testing the $29-31k range as resistance.
The second reason Capo cited includes a bearish pennant signal he referred to in late April 2022. The trader says that the bear pennant minimum price level has not yet been reached, which is another reason to believe that BTC will continue to decline. It is stated that the flag points to the minimum level of $ 23,000.
CryptoCapo then looks at Bitcoin funding rates, an asset sentiment indicator that explains why current rates are pointing to the bottom. It is following a Bitcoin open interest (OI) chart for support. The analyst stated that funding rates are always neutral or positive, but negative funding rates must be seen for a bottom to occur. He also pointed out that there was no major drop in the OI area, saying that a capitulation candle was not seen.
SPX and DXY, bad omen for BTC!
The crypto trader then looks at the Altcoin Perpetual Futures Index (ALTPERP), which tracks the price of a basket of leading altcoins, including Ethereum (ETH). He states that this index has broken the key level and the next support is 35-40 percent below current levels. Capo, who also looks at stocks, says the bearish SPX and the rising US Dollar Index (DXY) are bad omens for Bitcoin.
Finally, the crypto trader looks to BTC heatmaps, an asset liquidity indicator, as the sixth and final reason why he thinks Bitcoin will hit new lows in the coming days. looking. “You can clearly see a lot more supply than demand and some of the demand is weakening/declining,” he shares some examples like the one below.
