Bitcoin Bull Trap: BTC Price Will Hit New Lows in Coming Months, Analyst Warns

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Popular cryptocurrency analyst and pseudonym il Capo de Crypto (Twitter: @cryptocapo) believes an imminent capitulation awaits the industry despite Bitcoin’s recent rally above $21,000. Speaking to his 705,600 Twitter followers, the analyst highlighted several scenarios for major crypto assets. Generally speaking, the analyst indicated that the basic consolidation over the past few months is weak to warrant a strong parabolic crypto move.

As such, a correction in the crypto market below previous lows is imminent according to the analyst.

Bitcoin is in a parabolic move ltf. But there is a problem for bulls. This movement is already outdated. The base of the parabola was weak, and when this ltf trend breaks, it often results in steep declines and full reversals, the analyst said.

In conclusion, the analyst indicated that now may be the time for short-term traders to protect their profits ahead of a $12,000 surprise. Moreover, the price of Bitcoin has already exceeded the 2017/2018 ATH, which is a major factor in the bearish sentiment.

5. Conclusions.

Despite the recent rally, the bearish scenario has not been invalidated. If you have made any profits during these days, my sincere congratulations, but remember that it is not a bad time to protect these profits.

— il Capo Of Crypto (@CryptoCapo_) January 14, 2023 Bitcoin and Crypto Market Outlook

The crypto market received relief from the fallout from FTX and Alamedas as well as the 2022 bear market. The Ethereum (ETH) market jumped over 21% in the past seven days to trade around $1,565 on Monday. Nevertheless, the asset is still 67.7% below its ATH set on November 10, 2021. The bitcoin market, on the other hand, is down around 69% from its ATH.

Meanwhile, the Solana ecosystem is benefiting from the crypto FOMO rally with modest growth of around 145% over the past fourteen days. While the Solana Network was the hardest hit by the FTX implosion – down more than 90% since ATH – Santiment believes the recent rally is fueled by liquidated shorts.

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