With the latest correction, the price of Bitcoin (BTC) It fell to the $20,000 level. And according to a trader known as Capo, this is not the last support for the cryptocurrency’s price.
The famous trader, who predicted the current price correction, stated that Bitcoin is likely to drop again and lose the $20k support. If that happens, the market should see a new wave of panic and selling.
In this way, in the event of a further decline of BTC, the next level of support will be in the region between $18K and $16K.
Stability and false alarm
As Capo explained to his 375,000 followers TwitterBTC could drop below $20,000 and cause severe panic.
“If BTC breaks above $20,000, the panic could be massive. A lot of people have stopped below that level. Others think it can’t drop below all-time highs in 2017 because it hasn’t happened before. It could. That easily reaches $16,000 or $18,000 if it drops below $20,000,” he explains.
The reference to 2017 has to do with the fact that during the halving cycle, BTC never fell below the high of the previous cycle. In the case of 2017, BTC’s rally was around $19,600. Therefore, this level will be a kind of “natural support” for the price.
The problem is that there have only been two full BTC halving cycles so far, one that started in 2012 and the other in 2016. Currently, the cryptocurrency is in its third cycle, which started in 2020.
Given the halving’s low history, there is no guarantee that the $20K area is indeed support.
At the time of writing, one BTC is worth about $20,600. That is about $1,000 above the high of the last halving cycle.
Trader says ‘I’m still out of the market’
According to Capo, BTC has yet to hit rock bottom. The price fell to $20111, the lowest level since December 2020.
BTC, as well as cryptocurrencies in general, suffer from global pessimism regarding the economy. In addition, many companies in Cryptocurrency Withdrawals are limited or prohibited, which raises market concerns.
At the same time, institutional investors and funds suffer from a lack of liquidity and low leverage. This spreading fear may lead to further declines in the market
“See some money calls here. Honestly, this is one of the clearest fake bombs we’ve seen so far. In my opinion, the $20K level will not hold for long. We haven’t seen a proper bottom yet and no bullish signs. “I’m still out of the market,” Capo said.
The trader has an accurate history of predictions. When the value of Bitcoin was around $40,000, Capo predicted that if the price fell below $30,000, he would look for areas between $21,000 and $23,000. Something has already happened.
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