Crypto analyst sees a plunge ahead for Bitcoin(BTC) – what to expect?

YEREVAN (CoinChapter.com) – A crypto analyst with a Twitter handle CryptoCapo and north of 250,000 followers, waved a bearish flag for Bitcoin (BTC). He based the plunge predictions on past experience and concluded that the flagship cryptocurrency will drop well below its current value of $40,400. Moreover, CryptoCapo pinned the target price as low as $21-23,000 in a later tweet.

BTC plunge ahead?

The analyst tweeted the initial chart on Apr. 20, but then added more and more examples of further similarities between several periods in BTC/USD history, and the current charts. The slight uptrend before the “Covid dump” was one of them.

Also read: Gold knocks on the $2K door, while dollar index soares to a 2-year high – what’s in it for Bitcoin?

Moreover, the Bitcoin value is close to a rebound level at $40,000, and the lower trendline of a formation known as the Rising Channel. CoinChapter previously reported that the said Channel has been relevant month-to-date.

Thus, the current price action could retest the Channel’s support once more, boosting Bitcoin’s value towards the resistance at $50,000. However, the buying pressure might not be enought to create an upside impulse and secure a convincing rally. The trading volumes have been declining since Apr. 18.

Also read: Mastercard and Nexo launch crypto-backed credit cards, pushing Bitcoin (BTC) back above $40K.

However, there are hopeful predictors for Bitcoin as well, registered by crypto analytical platform CryptoQuant.

Not all bearish for Bitcoin

CryptoQuant stated in its latest weekly Bitcoin update, that the digital asset was leaving exchanges.

All Exchanges’ reserves remain at a 3-year low. Derivatives Exchanges’ reserve is a 1-year low while Spot Exchanges’ reserve is over a 4-year low.

specified the platform.

Traders’ decision to move their BTC out of exchanges could signify their willingness to hold on to their coins. That typically skews the supply/demand equilibrium, subsequently pumping the price. Moreover, whales do not hurry to part with their coins either. The CryptoQuant report estimated that “whales and miners are holding.”

Also read: Bitcoin leaving exchanges hit its lowest number since August 2018 as BTC eyes $50K-retest.

For example, electric car giant Tesla still holds its coins. The company’s balance sheets reflected $1.261 billion in digital assets, as Tesla has not moved its crypto assets since the first quarter of last year. Moreover, the balance sheets stated that “no purchase,” and “no revenue from sales” has occured in the digital asset segment.

Despite the HODLing, Bitcoin technicals looked grim on Apr. 22, as indicated on the charts above. However, short-term setbacks do not constitute a long-term bias. Thus, CryptoQuant urged its followers to be patient, and named the report “a matter of time, $BTC.”