Bitcoin analyst's forecast of impending meltdown amidst escalating black swan risk; altcoins bracing for significant turbulence, the analyst warns
In the world of cryptocurrency, predictions and analysis play a significant role in shaping investor sentiment. One such analyst, known as Crypto Capo, has issued a cautionary note about the near-term outlook for Bitcoin (BTC) and altcoins.
Despite Bitcoin's recent surge past $117,000, Crypto Capo warns that the current price movement resembles a technical "blow-off top," a pattern often preceding a sharp decline. He expects Bitcoin could drop to around $64,000 following this wave of intense price increase.
Capo also points to a possible “head and shoulders” pattern in the broader cryptocurrency market, excluding Bitcoin and stablecoins, suggesting weakening momentum, especially among altcoins. He remains sceptical about the strength of the current rally, noting persistent resistance for altcoins despite Bitcoin's peak performance.
The analyst further warns of potential major Bitcoin price drops that could trigger severe declines in altcoins, with possible losses reaching 50% to 80%. He describes the risk of a “black swan” event that might cause Bitcoin to tumble in the range of $60,000 to $70,000. This increase in market volatility could determine the trend for the following quarter.
However, Capo also suggests that such a deep correction might set the stage for a strong recovery and an extended bullish market cycle once stability returns.
Crypto Capo's analysis primarily relies on technical chart patterns, cycle trends, and market momentum indicators. His approach is often contrarian, leaning bearish when the market shows signs of euphoria. He stresses the importance of cautious positioning in light of the prevailing risks and macroeconomic uncertainties.
Meanwhile, billionaire Ray Dalio suggests that 15% of a portfolio should be invested in gold or Bitcoin for an upcoming money devaluation phase. However, the article does not provide specific details about industry announcements from Dreamcash, Succinct, ONyc, G Coin, Apu, Margex, and DWF Ventures.
Elsewhere, the mastermind behind a $13,000,000 crypto Ponzi scheme faces 15 years in prison after defrauding investors, according to the DOJ. Galaxy Digital moves $447,000,000 worth of Bitcoin (BTC), sending most of it to crypto exchanges.
Crypto Capo previously predicted that altcoin season has yet to begin and that a shakeout is required before it does. He has warned his 129,000 Telegram subscribers that both BTC and altcoins could see significant price drops in the coming weeks.
As always, it is crucial for investors to do their own due diligence before making any high-risk investments. Crypto Capo advises investors to stay focused and plan for volatility. Bitcoin is currently trading for $114,966, a fractional decrease during the last 24 hours. The release of a massive crypto report by the White House and the Federal Reserve leaving interest rates unchanged has led to a Bitcoin price drop.
- Crypto Capo, after noticing a potential "head and shoulders" pattern in the broader cryptocurrency market, excluding Bitcoin and stablecoins, advises caution towards altcoins due to weakening momentum and persistent resistance.
- Despite Bitcoin's recent surge, with a current trading price of $114,966, Crypto Capo warns of a possible sharp decline, predicting a drop to around $64,000 following its current wave of intense price increase.
- Diverging from Crypto Capo's bearish stance, billionaire Ray Dalio recommends investing 15% of a portfolio in gold or Bitcoin to prepare for an upcoming money devaluation phase.
