Bitcoin BTC/USD fell below $20,000 on Saturday and again down 70% from its all-time high on Sunday. Bitcoin’s fall came after the Federal Reserve chief Jerome Powell warned against expecting a quick end to the Fed’s rate hike.

The cryptocurrency was last below $20,000 in mid-July, falling to a low of $18,999.95 on July 13. Last week, pseudonymous crypto analyst capo predicted that bitcoin would drop to a new low during this prolonged slump.

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What happened: Now, in a new Twitter post, Capo has shown near-term optimism for Bitcoin, with a short push possible.

There are many shorts mimicking support here after taking the lows. Short squeeze is still likely.

I am bullish to 23000-23500 in the short term. pic.twitter.com/9DpIRuqh5i

— il Capo of Crypto (@CryptoCapo_) August 26, 2022

According to him, after rallying to $23,500, BTC is likely to fall back to $16,000 by mid-September.

$BTC

Same idea despite the choppy range.

23000-23500 then down to new lows. https://t.co/wWYyLvSAGG pic.twitter.com/ZdBTX9pvdv

— il Capo of Crypto (@CryptoCapo_) August 26, 2022

Last week he mentioned that Bitcoin is currently in the fifth wave of the primary downtrend and could correct up to the $23,500 level in a three-wave pattern.

Also read: This Billionaire Says One Factor Makes Bitcoin Gold Superior: Here’s What It Is

Beginning of March Capo predicted that Apex crypto would fall below $23,000. Bitcoin hit a low of below $18,000 in June 2022.

At the time of writing, Bitcoin was trading at $19,959, down 6.85% over the past seven days.