KOL Capo made inaccurate predictions about the crypto market in April, especially regarding Bitcoin (BTC) price.
Predicting the direction of the cryptocurrency market is challenging due to its high volatility and sometimes lack of correlation with broader economic trends.
Crypto Capo and the “Surrender Event”
Popular analyst @CryptoCapo thinks the April 2023 candle will be the largest bearish candle in history to reach the $12,000 region.
analyst explain More on his trade thoughts, when asked if he was joking:
“Unnecessarily. That’s what I really think, but with a little humor. It’s the price action that makes people optimistic and confident, but they don’t stop to think more.”
The fact that the Bitcoin price closed the April candle with a small gain negates Capo’s prediction.
However, it is worth mentioning that the price failed to break above the long-term resistance area of $31,000 (red symbol). Therefore, despite a bullish close, price action suggests that BTC prices may have reached a local top.
By using the RSI as a momentum indicator, analysts can determine whether the market is overbought or oversold to decide whether to overweight or sell an asset.
If the RSI is above 50 and sloping upwards, the bulls have the upper hand, but if the indicator is below 50, the opposite is true. The current reading is 50, indicating an uncertain trend.
On the monthly time frame, the next resistance is at $46,000, while the nearest support is at $23,000.
BTC/USDT monthly chart | Source: TradingView
MoonCarl . Contrarian Head and Shoulders Model
Well-known analyst @TheMoonCarl has tweet An inverse head and shoulders pattern on the Bitcoin price chart with a target of $40,000. This pattern is very unusual, featuring a neckline that slopes up.
Bitcoin price cannot break through. Conversely, a pullback occurred after the RSI formed a bearish divergence. This is a signal that occurs when price increases are not supported by momentum.
Afterwards, the Bitcoin price moved lower (red icon).
If the downtrend continues, the nearest support level is at $23,250, created by the 0.5 Fib Retracement Support (black).
On the other hand, a break above the previous high of $31,000 would indicate a bullish trend with a possible rally to $40,000.
BTC/USDT daily chart | Source: TradingView
You can see the token price here.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should do their research carefully before making a decision. We are not responsible for your investment decisions.
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According to Beincrypto