The widening fallout from FTX has impacted the cryptocurrency market. Apex crypto Bitcoin BTC/USD was trading below the $17,000 mark on Sunday. At the time of writing, BTC was trading at $16,567.
Pseudonymous crypto analyst Capo predicted this year’s Bitcoin collapse and said it is likely heading to new bear market lows.
Good morning!$BTC to $12,000-14,000 is a matter of time. Altcoins much lower (40-50% drop on average) pic.twitter.com/DEByAUUHQH
Capo believes that the current rally in the crypto market is meant to trap bulls, and a Bitcoin drop to lower levels will happen in the near term. In a Twitter post, he shared how BTC has flipped support at $17,600 into resistance.
A chart is worth a thousand words.
🔨 pic.twitter.com/Y9hGmPuzC7
He predicted that Bitcoin would be on recovery after hitting his capitulation target.
What I see:
-Technicals looking bad (price below June's low, indicators bearish, funding reset…)
-Same bull traps as always, but even weaker. People falling for them.
-Comments like ''you are going to miss the train''. Really?
This is not over. Final capitulation is likely.
According to crypto analyst Cred, Bitcoin is flashing relative strength despite the collapse of crypto exchange FTX. However, he says it's too soon to make a solid bullish case for Bitcoin.
"I understand that argument of relative strength that it’s holding up given the magnitude of what’s happening. But, if you’re going to make a bullish argument, it has to be that," said Cred.
“We had the worst news that was fathomable and unfathomable, yet the market is still kind of range bound on the daily chart. So someone’s willing to soak it up,” he added.
Read Next: The Wolf Of Wall Street Says He Was Wrong About Bitcoin: 'I Really Hated Crypto'
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