A closely tracked crypto strategist and trader is warning Bitcoin holders that BTC is poised to hit a new 52-week low.
Pseudonymous trader Capo tells his 322,300 Twitter followers another sell-off event is in sight for Bitcoin as the crypto markets continue to show signs of weakness.
“Almost the entire market except BTC has made a new low after yesterday’s bounce, showing that it was in fact a bull trap. BTC new low incoming.”
Over the last seven days, Bitcoin has managed to trade above $28,400, slightly higher than its 52-week low of $26,910. However, Capo warns that the support area around $28,000 is flashing signs of demand exhaustion as BTC has revisited the price level six times in a short amount of time.
“Nothing bullish here. That support won’t hold for long.”
Once Bitcoin takes out its immediate support, Capo predicts a sharp decline to his bear market target of between $21,000-$23,000.
Earlier this month, the crypto strategist accurately predicted that Bitcoin will takeout the key psychological price level of $30,000 and unveiled his thesis on believes whys BTC is likely set to print to a new yearly low.
“BTC – Some of the reasons why I think we should see new lows in the coming days:
BTC broke the $30,000 support zone, which was the main pivot of the bull run. This is a zone, not a level. It’s between $29,000-$31,000, taking all the wicks. Now it’s testing that zone as resistance.”
Capo also highlights that Bitcoin has broken down from a bear flag and is now en route to his bear market target.
“The minimum target of the bear flag hasn’t been reached yet $23,000. You can also see this on altcoins, where some of the main targets haven’t been reached yet.”
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Featured Image: Shutterstock/Krit Suppaudom