A popular crypto trader gave a bleak forecast for Bitcoin (BTC) and Ethereum (ETH) as the two biggest crypto assets by market cap are on the decline.
The analyst, nicknamed Capo, told his 265,300 followers on Twitter that Bitcoin is in a downtrend. Also, it is clear that buying BTC can lead to big losses when the price recovers. warned.
“Yesterday’s rise (pump) has completely receded. The bull trap has been confirmed and this time below $40,000.
Every bounce is a bull trap when the trend is bearish.”
The analyst talks about the price surge that Bitcoin has experienced before the Federal Reserve announced that it will raise interest rates on Wednesday. Bitcoin has been on the decline ever since.
“A typical pre-FOMC (Federal Open Market Committee) bull trap.”
Capo also said that Ethereum could also drop as low as $1,100, which is currently trading at $2,750 after losing 6.23% of its value in the last 24 hours.
“ETH
Main target: $1100-1300”
The analyst also thinks that the leading smart contract platform is currently in a distribution phase that could indicate the price direction.
“Accumulation or distribution?
Chart 1: accumulation occurs after a downtrend and distribution occurs after an uptrend (distribution is now more likely)
Graph 2: funding has been very positive throughout December, which supports the distribution thesis.”
Accumulation or distribution?
1st chart: accumulation happens after a downtrend, and distribution after an uptrend (distribution more likely now)
2nd chart: funding has been very positive during the range, supporting the distribution thesis https://t.co/PyGbNvX2As pic.twitter.com/0SpqCJdzLQ
— il Capo Of Crypto (@CryptoCapo_) May 5, 2022
Finally, Capo warned traders to be especially careful against bull traps in a bear market.
“Once again, do not fall into the trap. I warned you.”
“The bears are relaxing. But the bulls are scared and will surrender at some point.”
You can check the price movements 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.