Crypto Analyst Who Predicted Bitcoin Collapse Sees 50% Drop in Altcoins: 'Expect Bad News Soon'

Popular cryptocurrency analyst ‘Capo of Crypto’ said on Twitter that altcoins are set to drop over “40% to 50%” amid the FTX (CRYPTO: FTT) collapse.

What Happened: Capo noticed “bearish retests everywhere” and “hidden bearish divergences” on several time frames on Wednesday. A hidden bearish divergence indicates that a particular asset will continue to drop.

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Bitcoin (CRYPTO: BTC) will drop between $12000 and $14000 in just “a matter of time,” Capo said.

The analyst tweeted that the “bounces show clear bull trap characteristics.” A bull trap fools traders into thinking that a market is done falling and it is a good time to buy.

What I see:

-Bearish retests everywhere.
-Hidden bearish divergences on several timeframes.
-Bounces showing clear bull trap characteristics.
-Supply coming in (a lot)
-People euphoric with price at 16ks...

12000-14000 is a matter of time. 40-50% drop on average for altcoins.

— il Capo Of Crypto (@CryptoCapo_) November 23, 2022

In a subsequent tweet, he said, "Expect bad news soon." 

Expect bad news soon.

— il Capo Of Crypto (@CryptoCapo_) November 22, 2022

Earlier this week, Capo said that market capitulation has started and the “coming week is going to be decisive.”

It should be noted that Capo predicted this year’s Bitcoin collapse and said it is likely heading to new bear market lows. 

Price Action: BTC is trading at $16,526, up 5.40% at the time of writing, according to Benzinga Pro.
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