A closely followed crypto analyst predicts a deep correction for Bitcoin (BTC), which lost $40,000 on the Fed’s 50bps rate signals. Here are the reasons…
CryptoCapo awaits correction for Bitcoin as the struggle continues under $40k
As you can see from this article, Capo, known for his accurate price predictions, warns Bitcoin investors that a serious and sudden drop is on the horizon. . The popular analyst, who has more than 260,200 Twitter followers, says that Bitcoin’s current price structure on the four-hour chart mimics the price activity of the cryptocurrency during the pandemic-induced drop in March 2020.
Besides that, the crypto expert points out the cross support level that has kept Bitcoin above $30,000 so far this year. According to Capo, BTC will break the bullish line and correct up to $21,000 in the near future.
In which regions do investors concentrate their orders?
Capo also says that he regularly monitors Bitcoin (BTC) order books on multiple cryptocurrency exchanges to track demand and supply for Bitcoin. According to the analyst, large buy orders from Deribit were withdrawn, increasing the possibility of correction:
offers between $29k and $34k were removed by Deribit and kept the price in this range. I’m more likely to earn under $30,000 today.
Capo adds that Bitfinex exchange has the same situation:
Bitfinex did the same. The bid block between $36,600 and $37,800 is gone.
Capo claims to have detected signs of increased sell-side pressure on Bitcoin (BTC) while examining the crypto derivatives market FTX:
Also, exchanges like FTX adding too much supply drives the price down. Selling pressure is high.
At the time of writing, Bitcoin has been trading sideways in the last 24 hours, trading in the $39,500 region. As Bitcoin and altcoins are falling, Twitter shareholders accepting Elon Musk’s offer of $ 54.20 per share leads the Dogecoin (DOGE) price to a market-independent rally.
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