The popular crypto analyst who nailed the Bitcoin crash of 2022 says the current market rally is likely a bull trap.
Bitcoin legend warns
The pseudonymous analyst, known in the industry as Capo, tells his 698,800 Twitter followers that he predicts a market correction even if Bitcoin smashes at the $17,000 mark. As we stated as Kriptokoin.com, the analyst, who had previously made successful predictions in his predictions, correctly predicted that BTC would fall from the peak to $ 50,000 in 2021.
Many Altcoins have also lost value recently. However, Capo warns that Bitcoin has reached a resistance level directly below $20,000 and is likely for another leg, perhaps around $12,000, down more than 30% from the price of $17,324 at the time of writing. The analyst said in a statement:
“Ask yourself, why am I buying from here? From fomo (fear of missing out)? You see random altcoins with random pumps as they have been since the beginning of the downtrend and feel the need to buy. You might think this might be the bottom. However, there is not a single bullish confirmation yet. The downward trend is solid. Bitcoin and most of the market are testing broken supports as resistance. We’ve seen this over and over again. I’m not buying. ”
Forecast of increase in Ethereum
Capo predicts a deep dive for the S&P 500 (SPX), which has a tight correlation with the crypto markets. He predicts SPX will drop as low as $3,180 in February before rallying. At the time of writing the SPX is rated 3,940. Although Capo says it is downtrend, crypto strategist Kaleo says the market rally has just begun.
Looking at Ethereum (ETH), Kaleo says the top smart contract platform is going another leg up to $1,400. At the time of writing, Ethereum is up more than 12% from $1,192 at the start of the year to $1,343. “This rally is just getting started. Send it higher. ” said.
Looking at its chart, Kaleo predicts that ETH will enter the $1,500 price range later this month.
Capo hinted at altcoin collapse
Capo says that Binance Coin (BNB) is on the verge of collapse. In a post on Twitter, Capo said that Binance’s native token BNB will drop more than 80 percent. The analyst explained that those who bought BNB made their average entry at $265. However, he pointed out that the main target for short positions (short selling) remains at $40-45.
Analyst Capo said, “This is a very low leverage swing trade, not financial advice.” used the phrases. According to the chart prepared by Capo, BNB will fall first to the price level of $125-135. Along with it, it will decrease to the price level of $ 40-45 towards June. Instantly, BNB is trading at $274.