Crypto analyst Capo Of Crypto sees Bitcoin facing rejection near $50,000 resistance after finally breaching that level recently. He cautions that the entire crypto market looks poised to reverse once Bitcoin peaks.
Capo turned bullish on Bitcoin near $40,000 as technical patterns suggested a rebound toward $50,000 looked achievable in the short term. With BTC hitting its target earlier this week, the analyst now expects sellers to take over and drive prices lower again soon.
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Specifically, he anticipates Bitcoin struggling to clear resistance around $50,000. Meanwhile, altcoins would continue extending their gains, forming a divergence against sideways or bearish Bitcoin price action, signaling an impending trend reversal.
Capo sees Bitcoin hitting $30,000
Once this divergence plays out fully and Bitcoin starts cracking lower, Capo ultimately sees even the $30,000 level coming back into focus to complete the pullback. Although he doubts BTC drops that heavily in one move, he maintains that area may get retested in the weeks ahead.
So despite improving sentiment fueling the recent bounce across crypto markets, Capo thinks Bitcoin likely nears exhaustion after its 16% weekly climb. With the asset possibly topping out above $49,000, the potential exists for bears to regain hold and spark a pronounced correction amid bearish technical divergences.
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Of course, sentiment can shift rapidly to dash the bear case if BTC holds $50,000 support. However, if momentum stalls here as expected, Capo’s call for a divergent breakdown toward the low $30,000s warrants consideration.
Alongside Bitcoin, Ethereum has also exhibited a 7.6% gain in the last 24 hours. BTC is trading slightly below $50,000, while ETH is trading at the $2,660 level at press time.