For Bitcoin, the year 2022 has not been good. The largest cryptocurrency in the world by market capitalization has lost about 65% of its value since the start of 2022. Despite crypto markets mainly consolidating at the start of the week, Bitcoin surged closer to the $17,000 mark on Saturday.
An analyst who correctly predicted a bitcoin collapse this year has warned BTC holders that bitcoin is about to capitulate. According to expert Capo, Bitcoin is still showing bearish signs. While Capo says that the recent surge has mostly paled in comparison to BTC’s prior rallies since June, bulls have managed to accelerate from the current bear market bottom near $15,700.
“Every bounce is smaller. Lower lows and lower highs. Support becoming resistance. $12,000 is like a magnet.”
Additionally, Capo thinks it is likely that dealers are not prepared for the upcoming decline. He added that most are stuck at the $17,000 or above level. “Ideal conditions for proper dedication,” he continues, are being created for the way both cryptocurrency and stock markets are currently trading.
Looking at the stock market, Capo said that while respecting its diagonal resistance, the S&P 500 (SPX) is still in a downturn.
“Stocks are bleeding out, altcoins are breaking key support, indicators are pointing to the downside, bulls are getting euphoric and cocky for short puts.”
The market has collapsed as a result of the downturn, where more than 50% of BTC investors are currently losing money. According to Glassnode Alerts, the data showed that major cryptocurrencies have been exiting exchanges during the last 24 hours rather than entering them. By Christmas morning, there had been a net outflow of Bitcoin from exchanges of $46.8 million, while the total amount of withdrawals had been close to $300 million.
