A popular cryptocurrency trader, known as Capo, renowned for his bearish outlook on the market, has issued a dire warning to the crypto community. Capo, followed by over 750,000 users on Twitter, predicts significant contractions for leading cryptocurrencies Bitcoin and Ethereum, along with a substantial drop in altcoin prices.
Capo’s Prophecy of Doom:
Capo, known for his crypto pessimism, believes recent cryptocurrency price movements appear manipulated and anticipates a capitulation event. He suggests that Bitcoin could plummet to $12,000, while Ethereum could drop to $500-$700. Altcoins, on average, may experience a 60-80% decline. The trader, however, does not specify a timeline for these events.
Altcoins on the Edge :
Capo also highlights vulnerable altcoins that he believes are on the brink of new lows. He asserts that they have either shown signs of vulnerability or have already lost ground from this year’s bull run. The trader has been amassing short positions in cryptocurrencies such as Binance Coin, Solana, and Polygon, which have faced scrutiny and SEC allegations of being securities.
Building Short Positions:
Capo reveals his strategy of building short positions with low leverage in the altcoins he believes are likely to drop further. Among the cryptocurrencies mentioned are Binance Coin, TRON, Solana, AAVE, and Polygon. He claims that these positions are profitable, except for TRON, and emphasizes adding size at key resistances to maximize potential gains.
Crypto trader Capo’s pessimistic outlook and warning of contraction in leading cryptocurrencies Bitcoin and Ethereum, along with a significant decline in altcoins, have generated concern within the crypto community. Investors will closely monitor market developments to evaluate the accuracy of these predictions.