- A popular crypto strategist, who accurately warned his followers about the fall in crypto prices this year, has updated his forecast for the two biggest digital assets.
Crypto trader known by the nickname Capo, Bitcoin (BTC) says it has experienced support/resistance fluctuations where the previous support low becomes the next resistance ceiling.
As we noted at Koinfinans.com, the Analyst also tells his 392,900 Twitter followers that investors are repeatedly deluding themselves into thinking that a brief relief rally means BTC has reached a cycle bottom.
“It’s a small jump with no signs of bullishness and people are claiming it’s bottoming out. It’s the same story every time.”
Capo warns of bull trap
The trader then shares a chart highlighting the difference between a rising BTC price and sinking open margin contract interest, while warning investors of a bull trap. Bull traps lure traders into believing that a long rally has begun, but in fact, the price may soon turn negative again, causing traders to suffer deep losses.
“Do not fall into traps.”
Capo supports the bull-trap hypothesis, saying that Bitcoin rose only because investors liquidated their altcoin holdings and eventually invested in BTC to sell them for cash.
“Bull trap. Altcoins move to BTC to be sold later. The bottom has not been reached yet.”
Yesterday, the analyst said that “$16,000 is like a strong magnet” for BTC price. Today, it released an update warning investors not to follow the overnight price increase:
“Good morning! Still no reason to buy. We are patiently waiting.”
At the time of writing, Bitcoin has recovered nicely from its weekly low of $17,760, and is now changing hands at $20,472.
Analyst thinks the bottom has not yet come for Ethereum too
When it comes to Ethereum (ETH), the largest smart contract platform, the popular trader observes that the target zone of $983 to $1,223 has been reached before setting a new support level below $800.
“The main target has been achieved and we have bounced from there, but the bottom has not yet been formed.
As the new support zone that will complete the 5th wave, the eyes are between $ 700-800.”
Ethereum is also starting the week with a rally, currently up 5.41 percent and trading at $1,116.
While both BTC and ETH have rallied, Capo ends his tweet thread by sharing his latest predictions of how low each could go. The charting guru predicts that Bitcoin could drop to $16,200 and Ethereum to $750.
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.