An analyst who has been dry of Bitcoin right this year is warning BTC holders, saying that the capitulation event for the crypto king is in sight.
A pseudonymous analyst noted that companies like Capo are telling their 692,200 Twitter followers that Bitcoin continues to show weakness. Although Bitcoin bulls managed to trigger a rally from the current bear market around $15,700, Capo says that the recent bounce is weaker compared to BTC’s first since June.
“Every move is small. Little down and little up. Support becomes resistance. $12,000 is like a magnet.
At the time of writing, Bitcoin is changing hands for $16,840. A move to Capo’s $12,000 target indicates a fall of more than 28% for the crypto king. Capo also says that consumers are not prepared for a dramatic decline.
“Just read what’s said here, and you’ll get a second confirmation (the first is research and evidence) that many people fall above $17,000 or more and can’t withdraw anymore. As I said before, many people are not prepared for what is to come and it shows.
He added that the current crypto trading environment in the stock market appears to be creating “perfect conditions for the right headlines.”
“The stock market is bleeding, altcoins are breaking major support, indicators are falling, bulls are euphoric and proud of the small pumps.”
Turning to the equity market, Capo says that the S & P 500 (SPX) continues to decline after meeting its diagonal resistance.
“Clear the new bearish test. There is no downtrend.
Traders look at the performance of the SPX as a weak index indicating that investors are wary of risky assets such as stocks and crypto.