Bitcoin & Ethereum to Experience Final Capitulation! BTC To Plunge Below 20K and ETH To Hit $1800

The post Bitcoin & Ethereum to Experience Final Capitulation! BTC To Plunge Below 20K and ETH To Hit $1800 appeared first on Coinpedia - Fintech & Cryptocurreny News Media| Crypto Guide

The month of January has been the worst for Bitcoin. BTC’s price has subsequently regained above $37,000 after plunging from nearly $47,000 to below $34,000 in the first three weeks of the year. The entire crypto market has followed a similar price path, with Ethereum (ETH), Binance Coin (BNB), Solana (SOL), and Dogecoin (DOGE) all losing a lot of money at the beginning of the month before recovering in recent days.

Bitcoin’s price has recently had a bearish reaction from the $38,700 level. The bears even managed to drive the stock below $37,000. However, the price remained above the pivot zone of $36,200. With resistance approaching above $38,000, it appears like a bullish continuation pattern is building.

Before any major reversal, a well-known crypto analyst predicts that Bitcoin (BTC) and Ethereum (ETH) will experience “final capitulation.”

Bitcoin (BTC)

While Bitcoin has shown some resiliency in the last week, the pseudonymous analyst known as Capo informs his 239,000 Twitter followers that a final downward fall below $30,000 remains his base case.

BTC may briefly go below $30,000, according to Capo, but traders should be prepared for something far more dramatic. He mentions the March 2020 capitulation, when most BTC bulls misjudged the bearish collapse. As positive optimism for Bitcoin returns, the crypto trader is bracing for the worst, forecasting a dip below $20,000 in the near future.

Capo also identifies a number of variables that could make it tough for bulls to turn Bitcoin around. He says that because we’re in a bearish trend, with the SPX (S& P500) looking very bad, the DXY (US dollar index) looking bullish, and bulls saying this is the bottom and we’ll move to $50,000 in two days.

Ethereum (ETH)

As for Ethereum, it has struggled to break over the $2,640 barrier zone on several occasions. A modest negative correction occurred recently below the $2,550 mark. The price dropped below $2,500, but the downside was restricted.

With support approaching $2,510, a significant bullish trend line is emerging. Capo believes that Ethereum will only be ready for a comeback until it reaches the $1,800 mark, which is more than 31% higher than current pricing.