A widely followed trader who has remained bearish on crypto markets despite the rallies from the lows is issuing another warning on Bitcoin (BTC) and the digital asset sector.
Posting to his Telegram, the pseudonymous trader known as Capo says that he’s still expecting new market cycle lows for Bitcoin and altcoins.
Capo says that the bear market hasn’t ended yet, and that BTC’s rally from $15,700 to $30,000 was nothing more than a retracement, which has now come to an end.
He also says that the trend of memecoins going parabolic is a clear sign of a local top in crypto markets.
“The movement from the bottom of December 2022 is a correction. This movement is also called an internal retracement, bear market rally, wave B/X, bull trap… Some may disagree that this is not a bull trap. However, if ideal conditions are created for the majority of investors to buy and emotionally engage with their bags, while creating bullish sentiment with high expectations, then if prices make new lows this is clearly a bull trap. In fact, this would be the biggest of them all.
-The only purpose of this movement is to turn everyone bullish (they won’t achieve it with me), to be able to sell at higher prices and have exit liquidity again.
-Many altcoins have already retraced a large part of this run. Some others are already below the 2022 low. Others are at major supports or retesting these as resistance.”
The popular trader warns that an enormous move to the downside is imminent. He says that Bitcoin is likely en route to touch $12,000, while Ethereum (ETH) could crash well over 70% from current price levels.
“In my opinion we are about to witness a massive capitulation event. Both technical and fundamental reasons are there. The main target for BTC remains $12,000 (wicks below are not ruled out, but the high timeframe close should be around that level). ETH would reach $500-$700. Altcoins would drop 60%-80% on average, some even more…
Therefore, the most logical thing is to stay out of the market, while building short positions (very low leverage since these are mid-term positions) in altcoins that can drop more than the average, and also ignoring any noise that could distract you from the main plan, a plan which is based on knowledge, experience, and rationality.”
Capo accurately called the crypto crash of late 2022, but was expecting new lows to come several months ago.
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