Renowned crypto trader and bearish analyst Capo is sounding the alarm for digital assets, predicting significant declines ahead. With an extensive following on Twitter, the trader anticipates Bitcoin to slide towards $12,000, while Ethereum could dip to the range of $500-$700. Capo also warns of an altcoin capitulation, where these assets may lose more than half of their value.
The Bearish Outlook:
Despite this year’s crypto market rally, Capo remains steadfast in his bearish stance. He points out that price levels are still at critical resistance and suggests possible manipulation. The trader forecasts a looming capitulation event, with Bitcoin’s target at $12,000 and Ethereum’s between $500 and $700. Additionally, Capo predicts an average drop of 60-80% for altcoins.
Altcoins Displaying Weakness:
Capo highlights the weakening state of many altcoins, noting that some have already retraced from this year’s rally and are poised to reach new lows. Several others have retraced a significant portion of their gains, signaling potential new lows as well. Building on these observations, the trader has initiated short positions on select crypto assets, including Binance Coin (BNB), Solana (SOL), and Polygon (MATIC), which have recently faced scrutiny as alleged securities by the U.S. Securities and Exchange Commission (SEC).
Short Positions and Profit:
To capitalize on the projected decline, Capo has strategically built short positions for the mid-term, with low leverage. Adding to these positions at key resistance levels and targeting altcoins expected to drop further, such as BNB, TRX, SOL, AAVE, and MATIC, the trader has already seen profitable outcomes, except for the TRX position.
With the crypto market’s future in question, Capo’s warning serves as a cautionary signal to market participants. The trader’s analysis suggests that Bitcoin and Ethereum are likely to experience substantial drops, with altcoins facing even greater losses. As always, investors should conduct thorough research and seek professional advice before making any investment decisions.