The pseudonymous analyst Capo tells his 665,000 Twitter followers that he believes rallies in the crypto markets are meant to trap bulls.
“What I see:
-Technicals looking bad ([BTC] price below June’s low, indicators bearish, funding reset…)
-Same bull traps as always, but even weaker. People falling for them.
-Comments like ‘You are going to miss the train.’ Really?
This is not over. Final capitulation is likely.”
Looking at Bitcoin, Capo believes that a drop to lower levels will happen in the near-term.
“Good morning! BTC to $12,000-$14,000 is a matter of time. Altcoins much lower (40%-50% drop on average).”
The crypto strategist also shares that chart that supports his bearish thesis, showing that BTC has flipped support at $17,600 into resistance.
“A chart is worth a thousand words.”
Based on Capo’s chart, he predicts Bitcoin would ignite a steep recovery after hitting his capitulation target between $12,000 and $14,000. At time of writing, Bitcoin is changing hands for $16,654, down 1.41% on the day.
Shifting his focus to smart contract protocol Cardano (ADA), Capo sets a price target in the range between $0.16 and $0.20 for the Ethereum (ETH) rival.
At time of writing, ADA is trading hands at $0.324, suggesting an over 50% downside potential for Cardano.
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Featured Image: Shutterstock/Jorm S