A popular crypto trader warned that the price of Bitcoin (BTC) could drop further if a key support level is lost.
The trader, known by the alias Crypto Capo, told 375,600 Twitter followers that Bitcoin could drop below $20,000, which could cause massive panic. told.
“If BTC breaks the $20,000 level, the panic could be huge. Many people have stop losses below this level. Many feel that the 2017 all-time high cannot be broken because it has not happened before… if $20,000 is broken it could easily drop to $16,000 – $18,000.”
Bitcoin is trading at $21,086 at the time of writing. According to Capo, Bitcoin has not yet bottomed out, despite falling to $20,111, a level that was last reached in December 2020.
“Honestly, this is one of the most obvious fake pumps we’ve ever seen. In my opinion, the $20,000 level won’t last long. We have yet to see a proper capitulation and there are no signs of bullishness. I stay out of the market.”
Capitulation refers to a strong selling period in which investors give up their positions and sell their holdings as quickly as possible.
While Bitcoin was trading above $40,000 three months ago, Capo predicted that once the flagship crypto asset drops below $30,000, it will hit a target of $21,000 to $23,000.
“This is how I see BTC right now:
A clear break at $38,000 = $35,000
Breaking $35,000 = $30,000
Below $30,000 should hit the main target of $21,000-23,000.”
You can check the price movements here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, KoinFinans and the author of this content cannot be held responsible for personal investment decisions.