Major cryptocurrencies entered positive territory early on November 5 due to the continued existence of a market worth of more than $1 trillion for cryptocurrencies.

After the descending triangle pattern’s bullish breakout on November 5, the price of bitcoin showed a  bullish trend.

The technical picture indicates that there is still room for more gains for BTC, which is currently up more than 3% to $21,342.

However, the Bitcoin bulls are being warned by the crypto analyst who correctly predicted this year’s crypto bloodbath.

According to pseudonymous crypto analyst Capo, BTC is currently attempting to chase as many bulls as possible.

Bitcoin has hit a price level after its most recent climb above $21,000 and investors will likely take profits and drive BTC to new 2022 lows.

“As I’ve said many times, $21,000-$21,500 is hammer zone (distribution zone). Distribution phases are made to trap as many longs as possible while destroying early shorts. This means several pushes into the resistance zone, that strong hands use to keep building their position.”

Bitcoin Price to Test the $14k Levels?

The analyst believes, based on the chart, that a distribution above $21,000 would lead to a sell-off event that would drive Bitcoin all the way down to his target price of $14,000, implying a fall of roughly 34% for the leading cryptocurrency.

Although Capo has a bearish outlook for Bitcoin, the chart also showed that if BTC is able to rise and consolidate around $23,000, his analysis may not hold true. Prior to shorting Bitcoin, Capo said that he is currently awaiting confirmation signs.

“I’m not bullish on BTC anymore, but I’m not shorting neither until I see bearish signs (until the distribution is complete). A last push to $21,400-$21,500 is possible and you don’t want to short here without a bearish confirmation.”