A popular analyst who expects a drop in Bitcoin for most of 2022 reveals a glimmer of hope for BTC. Knowing about the recent crash, the crypto analyst finally made an optimistic forecast for Bitcoin. However, he added that he expects further declines in the long term.
“I am in an uptrend for Bitcoin”
Crypto analyst Capo, nicknamed Capo, shared his predictions about the price of Bitcoin to his 492,100 Twitter followers. According to him, trader activity following Bitcoin’s plunge towards $20,000 indicates that a short squeeze is possible. Therefore, Capo says he is optimistic about Bitcoin’s price action. However, he adds that this optimism will continue until the leading cryptocurrency rises to the $23,000 resistance level.
Short squeezes happen because of traders borrowing units of an asset at a certain price. These traders are forced to take back the difference (short) as they act against trading biases, in hopes of lower sales out-of-pocket. This causes a short squeeze. Capo said:
“There are a lot of shorts here looking for support after taking the dips. Short jam is still possible. I am in a short-term uptrend to $23,000-23,500.”
“These bottoms are coming in mid-September”
The analyst warns his followers that Bitcoin will experience a big drop after rising to $ 23,500. Accordingly, he says the top coin will likely drop to $16,000 by mid-September. He also re-shared an August 24 post to reaffirm this thesis:
“Despite the choppy range, I agree. BTC dropped to $23,000-23,500, then new lows.”
At the time of writing, Bitcoin crashed along with most other markets in response to the FED’s announcement on Friday that it would not lower interest rates anytime soon. The leading cryptocurrency has lost nearly 6% on the day and is trading at $20,341.
He knew the last crash
As we reported as Kriptokoin.com, Capo correctly knew about the Bitcoin crash that occurred on August 16. BTC had reached unseen highs of $25,000 at that time. At that time, Capo said that the leading cryptocurrency could drop to $21,000. Then that prediction turned out to be correct. In addition, Capo correctly predicted that Bitcoin would drop below $30,000 in the first months of 2022. BTC has been trading below the mentioned level for months.
Bitcoin saw below $20,000, will the decline continue?
Bitcoin broke below $20,000 this morning and tested the $19,900 level before posting slight gains. BTC was last traded in July, at less than $20,000. The recent decline has led to a liquidation in the market. Accordingly, the amount of funds liquidated from the market in the last 24 hours has reached 400 million dollars.
Analysts warn investors of rising short interest rates and low volumes. According to them, BTC could experience further declines. This is in line with Capo’s new prediction. According to analysts, the first upside target for BTC will be retracing the old support of $20,700. However, the weekly close will take place tomorrow. Therefore, analysts warn investors that volatility may increase.
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