According to the persistent trader known as Il Capo of Crypto, Bitcoin, Ether, and other cryptocurrencies may be headed for “new lows,” despite their remarkable gains this year.
Il Capo, who has maintained a $12,000 BTC price target throughout the year, recently declared the end of the current bull market in a December 22nd post on X (formerly Twitter).
While Bitcoin and Ether have surged by 163% and 92%, respectively, year-to-date, as reported by Cointelegraph Markets Pro and TradingView, Il Capo remains skeptical, predicting a looming collapse.
They suggest that BTC/USD is likely “forming a local top here at 40kâ45k” and that Ethereum (ETH) could potentially drop to the 2500s, with some altcoins experiencing their final pumps before a reversal to new lows in the coming weeks.
Il Capo’s bearish outlook coincides with significant developments in Bitcoin’s history, notably the impending approval of the first Bitcoin spot price exchange-traded fund (ETF) in the United States.
Many consider this event a pivotal moment that could open the doors for institutional capital to flow into Bitcoin.
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With a popular BTC price target of $48,000 associated with this decision expected by January 10, 2023, Il Capo’s skepticism seems to diverge from the overall bullish sentiment prevailing in the market.
In November, they already hinted at the “beginning of the end” and noted that prices were rising higher than anticipated, accompanied by extremely bullish sentiment.
Others also acknowledge the possibility of a significant correction, even in the event of a positive ETF confirmation, viewing it as a potentially healthy catalyst for the bull market.
Trading firm QCP Capital, in its final market update for 2023, speculated that a “sell the news” scenario could unfold in the second week of January, leading to topside resistance for BTC in the 45-48.5k region and a possible retracement to 36k levels before the uptrend resumes.
Despite short-term uncertainties, there is confidence that the upward trend in cryptocurrencies will eventually continue, especially as the market positions itself for a strong rally into the Bitcoin halving, albeit possibly after a few weeks of market adjustment.
As Il Capo of Crypto stands firm in their bearish perspective, the crypto community awaits the unfolding of these critical events to determine the market’s future direction.
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