### Analyst Warns of Potential Bitcoin Retrace as Market Conditions Waver

A well-regarded analyst who predicted the 2022 cryptocurrency downturn is now cautioning investors about a possible imminent correction in Bitcoin's value.

The pseudonymous analyst known as Capo, who has a following of 102,828 on Telegram, has expressed concerns that Bitcoin (BTC) may soon experience a sharp decline, potentially surrendering its recent substantial gains. Capo noted, "I'm still out of the market for a few weeks now. At this point, it doesn't matter if [Bitcoin] reaches $98,000, $99,000, or if it goes above $100,000. The local top could occur at any moment, and this movement could be fully retraced."

Among the factors Capo cites as contributing to a likely correction is that US President-elect Donald Trump is not set to assume office until January 20th. Furthermore, the current sentiment in the market is highly bullish, with retail investors heavily investing in memecoins, which Capo describes as feeling overextended and unhealthy. He predicts that a significant correction is overdue and would impact the entire market.

Capo also pointed out the political climate, stating that the transfer of power in the US, currently overseen by Democrats, is fraught with tension. There are concerns about possible unrest, which he views as an attempt to complicate the political landscape for Trump.

Another critical point of concern is the US government's possession of 208,109 BTC, valued at $20.15 billion. The government recently received approval to sell these Bitcoin, likely through auctions or gradual sales. Capo speculates that this could be strategically timed to manipulate BTC prices, potentially leaving a negative impact on the incoming administration.

He also highlighted a divergence forming between the dollar, which has been showing strength, and Bitcoin's recent surge. Additionally, Capo noted weakness in many altcoins, some of which are testing significant resistance levels. He emphasized that the current market run driven mostly by BTC and memecoins is not a positive indicator. He does not rule out a few final altcoin pumps but warns they could see substantial declines of 60-80% in the coming weeks.

As of now, Bitcoin is trading at $98,994.