The crypto strategist, who correctly predicted that Bitcoin (BTC) will drop below $30,000 this year, warns that a sell-off event in the altcoin markets is imminent.
The analyst, using the alias Capo, told his 477,300 Twitter followers that he closely follows the OTHERS chart, which tracks the total market cap of the top 125 cryptoassets excluding Bitcoin and other major altcoins.
Capo predicts OTHERS chart to decline after failing $160B resistance doing.
“Some exit scam spikes in altcoins can give you the illusion that we are in an alt season. This is far from true. The truth is that the average market cap of altcoins has not even doubled and is running a macro resistance test. Don’t be fooled. Further declines are likely.”
At the time of writing, the OTHERS chart sits at $153 billion. A move towards Capo’s target of around $66 billion indicates a downside risk of over 55%.
Besides, Capo points out that the leading smart contract platform is currently testing a major resistance level, looking at the leading altcoin Ethereum (ETH). stated.
“This level is much more important. Also, the fact that the move is a corrective one explains it all.”
As for Bitcoin, Capo says that the leading cryptocurrency could rally one more time before continuing the downtrend.
“It has reached $25,000 but there are no signs of bearish yet on the lower timeframes. We may see another rise to $25,400-25,500, but I think the peak of this bear market rally is very close. Most altcoins are reaching huge resistances.”
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.