A much-followed trader who has remained bearish in the crypto markets despite the rallies from the lows is issuing a new warning about Bitcoin (BTC) and the digital asset sector.
In a post on his Telegram, the pseudonymous trader known as Capo says he still expects new lows in the market cycle for Bitcoin and altcoins.
Cap say that the bear market has not yet ended 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 parabolic memecoin trend is a clear sign of a local high in crypto markets.
“The movement from the December 2022 bottom 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 get emotionally involved, while at the same time creating an optimistic sentiment with high expectations, then this is clearly a bull trap as prices hit new lows. In fact, this would be the biggest of them all.
-The sole purpose of this move is to make everyone bullish (they won’t achieve that with me), to be able to sell at higher prices and have exit liquidity again.
-Many altcoins have already recovered much of this run. Some others are already below the 2022 low. Others are at key support points or are retesting as resistance.
The popular trader warns that a massive downward move is imminent. He says Bitcoin is likely on track to hit $12,000, while Ethereum (ETH) could crash more than 70% from its current price level.
“In my opinion, we are about to witness a mass capitulation. There are both technical and fundamental reasons. The main target for BTC remains $12,000 (wicks below are not ruled out, but the 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 to do is to stay out of the market while building short positions (very low leverage as these are medium term positions) in altcoins that can drop more than average, also ignoring any noise that might distract you from it master plan, a plan based on knowledge, experience and rationality.”
Capo accurately mentioned the crypto crash of late 2022, but expected new lows several months ago.
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