Binance Coin (BNB) is on the verge of collapsing, according to a widely followed crypto analyst who predicted the Bitcoin (BTC) crash in May 2022.
Capo, a pseudonymous crypto trader, tells his 697,100 Twitter followers that the native token BNB of the giant crypto exchange is likely to fall by more than 80%.
“Adding the final part to the BNB short, average entry: $265. The primary target remains $40-$45. This is a swing trade with very little leverage; it is not financial advice.”
According to Capo’s chart, BNB will first fall to the $125 to $135 price level, followed by a drop to the $40 to $45 price level by June.
BNB is currently trading for $258 at the time of writing.
Capo also predicts that Bitcoin will fall by more than 28% from its current value to a low of $12,000 this year, after trading sideways in the mid to high $16,000 range.
“$16,600, $16,800, $16,600, $16,800, $16,600, $16,800… And then there’s $12,000 when you least expect it.”
According to Capo’s chart, Bitcoin will fall to $12,000 and altcoins will fall by 50% to 60% before the spring. According to his chart, once Bitcoin has bottomed, it will likely rally to more than $20,000 by May.
He also believes that any near-term Bitcoin rally will act as a bull trap, similar to the price action of 2022.
“It takes a tiny pump into resistance to turn everyone bullish again. This same trap has been repeated throughout 2022, and people have yet to learn. $12,000 is a strong possibility.”
Bitcoin is currently trading at $16,856 at the time of writing.
