Although the rapid decline that began about 2-3 hours ago shocked some investors, it was foreseeable. We mentioned hours before the downward movement was triggered that such an end was awaiting us. The unsurprising result caused significant losses in altcoins as expected. How does the best crypto analyst of 2022 evaluate the recent drop?
Capo and Crypto Predictions
Today, after the US data came in poorly, the expectation of a drop in BTC price settled. Data undermining the Fed’s view of at least a 50bp rate cut this year encouraged sellers. With the arrival of the data, Capo commented, “Remember, dips are for buying until proven otherwise.” Especially with altcoins experiencing drops nearing 20%, it allowed us to see a real bottom spike.
He then shared the following chart on social media for altcoins and said;
“Crypto market update…
Strong sell-off towards support. Altcoins suffered more, but this looks like a shakeout.
If these support levels hold, we should soon see the continuation of the uptrend.”
Writing that the support for SOL Coin has been cleared, Capo highlighted the risk of further sales.
What Will Happen to Cryptocurrencies?
The Fed meeting is in 5 days, and the Fed is not in a good position. Members are people capable of reading leading indicators well, and if their readings point to a bad end, we could see harsh statements at the meeting. Additionally, if Fed Chair Powell makes statements delaying cuts, concerns in risk markets will multiply.
Members will not make statements for 5 days, and markets will price in the latest data. So, during this period, especially as weekend volumes drop, sharp downward surprise movements may occur. On the day of the meeting, volatility may increase depending on the statements made. Currently, BTC ETF data has not been released.
Investors familiar with traditional markets have been making significant purchases with the expectation of further rises for a while. If this has turned into rapid sales and we see a significant net outflow for the last trading day, there will be more reasons for altcoins to free dive and spike deeper bottoms over the weekend.
