The pseudonymous crypto analyst, who accurately predicted the current Bitcoin (BTC) bear market, claims that digital assets will offer excellent trading opportunities in the coming days.
Crypto Capo tells 406,500 Twitter followers that charts will set new lows before July told.
“The charts remain bearish and we will likely see new declines these days. These decreases will provide good buying opportunities.”
Capo then analyzed the Bitcoin dominance graph (BTC.D) using Elliot Wave Theory. BTC.D is an indicator that reveals how much of the total crypto market cap is owned by Bitcoin. A rising BTC Dominance indicates that Bitcoin is rising faster than other crypto assets or altcoins are depreciating.
Elliot Wave theory, on the other hand, is a technical analysis tool that predicts future price movements by following crowd psychology that manifests in waves. According to the theory, an asset goes through a five-wave cycle before reversing a major trend.
Looking at the BTC.D chart, Capo says that Bitcoin’s dominance has reached a local bottom (wave 4) and is about to increase its market share (wave 5), meaning altcoins will fall against BTC. However, BTC.D is expected to form a local bottom signal for altcoin markets once it reaches its 5th wave peak.
“BTC.D (Bitcoin dominance) update wave 4 completed. The 5th wave that altcoin/BTC pairs will drop is missing.”
On the other hand, in line with the BTC.D chart, Capo predicts that BTC will enjoy a short and steep rise before falling into the $16,000 range and experiencing a massive drop.
“BTC [düşük zaman çerçevesi] Local bottom formation between $16,000-17,000.”
On the other side of Bitcoin dominance are altcoin markets, which are suffering as BTC.D rises. Capo says many altcoins are stuck in bearish parabolas that often end with upside corrections. The trader points to the decentralized exchange token Sushi (SUSHI) as an example.
“One thing is pretty clear: Many altcoins are bearish. When parabolas break, it causes major corrections (in this case upwards). The parabolas aren’t finished yet, but they’re almost done.”
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.