The markets have improved to some extent as the price of Bitcoin (BTC) has surpassed $19,500. For nearly a week, the price traded in a narrow range between $19,000 and $19,500, occasionally testing lower support below $19K. Although the overall outlook for the asset remains bearish, a significant upswing may be expected in the short term.
Given this, is now a good time to buy bitcoin? Find out what renowned analyst Capo thinks!
In a series of threads, Capo explains why Bitcoin won’t drop another 50% after reaching lower highs, as it did in 2018.
Firstly, BTC price has been continuously testing lower supports between $18K and $19K and bounced back each time it tests these levels. However, the bounce is getting weaker and weaker, which indicates a declining buying power as the bears continue to push the price down. Therefore, these support levels may eventually be breached very soon.
Considering price analysis, the next major support levels after breaking down from these levels could be $13K to $14K. However, the price is not expected to drop straight to these levels as the current trend is bullish in the short term. Hence a short-term bounce towards $21,000 as the fundings remain negative which may further continue to squeeze shorts.
Overall, bitcoin’s main trend remains bearish while local bottoms are likely near $14,000. Since the short term trend is very bullish, the price of BTC could go higher, but at the same time, the altcoin could undergo a massive uptrend that may not last long.
