A popular crypto strategist and trader who accurately called the latest Bitcoin correction says his bear case remains valid unless BTC can recover a crucial level.
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.