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Crypto Analyst CryptoCapo made a succinct statement wherein he pointed out that in the phase where altcoins shred 50-90% of their price, the potential bottom that BTC could reach was in the range between $11,500-$12,000.
A chart is worth a thousand words. pic.twitter.com/bZ2TKpnLFs
— il Capo Of Crypto (@CryptoCapo_) January 3, 2023
He conveyed his message by saying that a chart was worth a thousand words. The analyst made this comment by paraphrasing the saying that goes, “a picture is worth a thousand words”.
BTC opened the market for the past week trading at $16,570 as shown in the chart below. During the first four days of the past week, BTC fluctuated in and out of the red zone, but by the end of the week, BTC recovered. During the last few hours of January 1( the third day of the week), the bulls helped BTC trade above its opening market price.
Since the bulls gave momentum, BTC has been trading in the green zone. Currently, BTC is down 0.07% in the past 24 hours and is trading at $16,844.55.
BTC has been forming the shape of a cup since late August, as denoted in the chart below. It made new lower lows from late August to late September. However, since mid-October, BTC has gained some momentum and made higher lows (Circle). Once BTC formed the brim of the cup close to resistance 2, it tumbled.
The prices fell from $20,886 to $15,604 within 24 hours. Since this fall, BTC has been fluctuating between Support 1(≈$15,800) and Resistance 1 (≈$18,500). Notably, after this fall, BTC has been trading below the 200-day MA (yellow). BTC tested the 200-day MA recently and broke it.
However, it wasn’t able to keep the position that it gained. And it fell below the 200-day MA shortly after breaking it. After rebounding on the 200-day MA in late December, BTC is testing the 200-day MA again. If the bulls push hard, BTC will be able to break the 200-day MA and reach resistance 1.
However, if the bears take over the market, BTC could land on Support 1. Moreover, the RSI is 56.41, denoting that the trend of sideways movement will continue. Additionally, BTC has touched the upper Bollinger band; hence the market could correct the price.
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