A widely followed crypto trader is warning that Bitcoin (BTC) could soon undergo an abrupt bearish trend reversal within days.
Pseudonymous trader and crypto bear Capo tells his 792,900 followers on the social media platform X that Bitcoin could soon collapse to as low as $30,000.
“Update.
BTC reached $48,000-$50,000 and ETH $2,500-$2,600. A last pump to $50,000 is possible. Then BTC should go sideways while altcoins pump more (money flowing to low caps). After a few days, the entire market should reverse and dump.”
Looking at his chart, the trader uses the Elliott Wave theory, which states that the main trend of an asset’s price moves in a five-wave pattern while a correction occurs in a three-wave pattern.
According to Capo, the fifth wave could catapult Bitcoin to $50,000, which may lead to capital rotation into altcoins. The analyst also says that Bitcoin might then fall to the $30,000 to $31,000 range, which could hold as support and lead to a possible price bounce above $33,000.
Earlier this week, Capo predicted that the crypto market would rally on the news of the U.S. Securities and Exchange Commission (SEC) approving spot Bitcoin exchange-traded funds (ETFs). He predicted that the crypto market would top out after the rally, see a bearish trend reversal and print new cycle lows.
“After this, which should take a few days, the market should reach a very important local top. That’s when I will start opening swing short positions, aiming for new lows.”
Bitcoin is trading for $42,596 at time of writing, down nearly 7.44% in the last 24 hours.
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