Crypto Analyst Issues Bitcoin, Ethereum and Altcoin Warning After BTC’s $21,000 Explosion
A popular trader known for staying bearish throughout 2022 says recent rallies mean nothing and another decline is inevitable.
Nicknamed trader Capo tells his 703,000 Twitter followers that his bearish view hasn’t been invalidated by the massive market swell, which has seen Bitcoin (BTC) rise 21%, Ethereum (ETH) 23% and much altcoins explode 30% or more in the last seven days.
According to Capo, BTC is still unsuccessful in breaking its most critical resistance around the $21,000 to $22,000 area.
“The market is jumping more than expected. This is a certainty. Now… is the fallout scenario invalid?
I will explain why I think new lows are still possible…
BTC is still testing major resistance. The weekly close will be the key, but there is no firm confirmation yet.”
Capo says similar resistance is present on the charts of Ethereum, total crypto market cap (TOTAL) and total altcoin market cap (OTHER). He doubles down on bearish price targets for all instruments, including $600 for ETH.
“This is also clear for ETH, TOTAL and OTHERS.”
Source: Capo/Twitter Source: Capo/Twitter Source: Capo/Twitter
The trading veteran also sees weakness in the stock market, which has largely maintained a directional correlation with cryptocurrencies over the past several years. He says the S&P 500 is forming repeated lows and predicts this quarter’s earnings season won’t be as good for most of the big companies listed in the index.
“The downtrend of traditional markets is also intact. The SPX continues to form all-time highs and the earnings session is expected to be a bad one.”
Capo’s chart suggests about a 22% decline in the S&P 500, which closed Friday at 3,999 points.
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