Popular cryptocurrency analyst ‘Capo of Crypto’ said on Twitter that altcoins are set to drop over “40% to 50%” amid the FTX FTT/USD collapse.
What Happened: Capo noticed “bearish retests everywhere” and “hidden bearish divergences” on several time frames on Wednesday. A hidden bearish divergence indicates that a particular asset will continue to drop.
See Also: Best Cryptocurrency to hedge against inflation
Bitcoin BTC/USD will drop between $12000 and $14000 in just “a matter of time,” Capo said.
The analyst tweeted that the “bounces show clear bull trap characteristics.” A bull trap fools traders into thinking that a market is done falling and it is a good time to buy.
What I see:
-Bearish retests everywhere.
-Hidden bearish divergences on several timeframes.
-Bounces showing clear bull trap characteristics.
-Supply coming in (a lot)
-People euphoric with price at 16ks…12000-14000 is a matter of time. 40-50% drop on average for altcoins.
— il Capo Of Crypto (@CryptoCapo_) November 23, 2022
In a subsequent tweet, he said, “Expect bad news soon.”
Expect bad news soon.
— il Capo Of Crypto (@CryptoCapo_) November 22, 2022
Earlier this week, Capo said that market capitulation has started and the “coming week is going to be decisive.”
It should be noted that Capo predicted this year’s Bitcoin collapse and said it is likely heading to new bear market lows.
Price Action: BTC is trading at $16,526, up 5.40% at the time of writing, according to Benzinga Pro.
Read Next: Cathie Wood Reiterates $1M Price Target For Bitcoin: ‘Sometimes You Need To Go Through Crisis To See Survivors’
