Bitcoin is trading below $30,000 again. In recent analysis, Capo and Rekt Capital issued warnings about the leading cryptocurrency. Capo says the critical phase could begin today.
Capo says the critical phase for Bitcoin could begin today
Popular trader Crypto Capo says Bitcoin chart analysis is good news for Bitcoin bears and bad news for bulls. In current BTC analysis, Capo warns that Bitcoin could drop further.
Additionally, Capo clarifies his comments by citing a graphic he shared on May 2 this year. “How long do you think the rising (Bitcoin) channel support will last?” he asks.
The analyst now believes that his predictions for May will remain inconsistent as Bitcoin becomes liquid. He thinks that the near price drop of BTC could bring the leading crypto down to the $22,000 range.
Meanwhile, the drop to the $21.865 price target pointed out by the analyst means 27% depreciation. Capo also says that the “final leg” for Bitcoin could start from today. He bases his analysis on fractals and Fibonacci time extensions, which are mathematical technical analysis tools useful for helping traders predict price targets. Based on fractals and fibonacci time extensions, the final step (capitulation) will begin today.
Rekt Capital: Bitcoin still hasn’t bottomed
A popular crypto strategist is examining a key metric to determine whether Bitcoin has finally bottomed in the current bear market. Rekt Capital, whose analysis we share as Kriptokoin.com, shared a long series of tweets about how the price of Bitcoin was affected by the EMA, a calculation in which the latest data points have more weight and importance. The analyst sharing the chart below says:
BTC tends to confirm uptrends when it breaks above the blue 50-week EMA. Bitcoin tends to confirm the maximum financial opportunity when it reaches the black 200-week EMA and leaves it. As a result, has BTC bottomed out or will it drop further?
The chart gurus had significant price movements in 2015, 2018 and 2020 before revealing that the price of BTC likely did not reach a cycle bottom as it remained 66% below the 50-week EMA. cites:
The key takeaway is that the initial BTC floor tends to form at least 100% away from the 50-week EMA. The second BTC bottom tends to form 50-70% away from the 50-false EMA. If that continues to be true, then BTC has yet to bottom out in this cycle. Because the current local BTC bottom is 66% off the blue 50-week EMA. Typically the first BTC bottom is ~100% and the second bottom is 50-70% from the 50-week EMA. This current situation looks more like a ‘second bottom’ behavior than a ‘first bottom’ price action.
The target for this technical view is $20,000
Rekt Capital ends its analysis by targeting around $20,000 as investors should wait for Bitcoin to drop before touching the bottom of a cycle. Next, looking at the chart below, the analyst says:
Will BTC repeat a 100% breakout from the blue 50-week EMA once again? Then we will see a BTC bottom near the $20,000 area. Thus, it would satisfy the general tendency not to revise previous ATH levels in correction periods.
At the time of writing, Bitcoin continues to fluctuate below $30,000.
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