Crypto analyst warns of a potential downtrend

The analyst said that Bitcoin and altcoins could enter a sudden downtrend.

In a statement on X, crypto analyst and trader Capo claimed that the leading cryptocurrency Bitcoin could soon revisit $30,000 and that altcoins could face a sudden correction.

"Bitcoin is probably forming a local high between $40,000 and $45,000. ETH could reach $2,500 and some altcoins could be bullish. Following this, it seems likely that there will be a full return to new lows in the next few weeks.
I believe that new lows can still come before the real bull market begins."

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Capo also summarized why he thinks this way as follows:

"Let's start with the image of Bitcoin on HTF (higher timeframe). We have seen an upward trend throughout 2023. Many people think that this is the beginning of a new bull rally, but in my opinion, this is a corrective move. Currently, the price is in a major resistance zone. And the graph confirms that."

It is worth remembering that Capo analyzes using the Elliot Wave theory. This theory is a method of analysis based on the idea that markets form similar patterns over a longer period of time, as well as on a shorter time frame.

The analyst said that the money from Bitcoin sales is flowing into altcoins, which could mean a market correction.

"Money is flowing from Bitcoin to altcoins. This usually occurs in the final stages of an uptrend. Some altcoins may increase further, but the trend has become overextended and is nearing an end. We should see a strong correction when the others (altcoin index) reach the green zone."