Trader Who Nailed Steep Bitcoin Correction Issues Fresh Warning on BTC Price

The analyst, pseudonymously known as Capo, tells his 154,200 Twitter followers that Bitcoin’s current market structure resembles its price action in April when BTC topped out above $60,000 before igniting a sharp 50% correction.

“It looks very similar to the $64,000 top.”

Late last month, when Bitcoin was trading close to $50,000, Capo predicted a steep correction that could send the leading cryptocurrency all the way down to $37,000.

“The low timeframe bullish market structure is broken. Expecting a lower high (dead cat bounce) from here, but then further drop to $37,000-$40,000, which would be a very good buy opportunity for the long-term.”

With Bitcoin currently trading around just below $47,000, the crypto strategist believes that BTC can still ignite the next leg of its downtrend unless it recovers a key support level.

“Now, if it gets back below the upper blue line, the bearish scenario would still be valid. Fundings make me think this is going to be a deviation.”According to Capo’s chart, a bullish scenario for Bitcoin involves a move above the $50,000 resistance and flipping it into support. However, should Bitcoin move below support at $46,000 and retest it as resistance, the leading cryptocurrency can drop all the way down to $37,000.

Source: dailyhodl.com