A prominent crypto trader and strategist unveils that he’s buying Cardano at the expense of his Ethereum holdings.
The pseudonymous trader known as Capo tells his 136,00 followers that Bitcoin is showing signs of strength after managing to stay above the key support of $30,000.
“BTC. Good bounce so far. Remember that the longer the range, the bigger the mark-up.”
According to Capo’s chart, Bitcoin is following the Wyckoff accumulation schematic, which is a phase in a market cycle where price action indicates larger players are building positions in preparation for a leg up. The chart also highlights that Capo’s bullish bias will be confirmed once BTC breaches resistance of $42,000 and flips it into support.
The closely-followed strategist has remained bullish throughout the drawdown, and he expects Bitcoin and the crypto markets to hit new highs this year. Capo has previously mentioned that he’s looking at the Bitcoin Dominance Index, which shows the value of BTC relative to that of the total altcoin market, as a bellwether of crypto market cycles.
“When the Bitcoin Dominance chart reaches its bottom, it usually matches with the cycle top. I still don’t see bottom signs on this index.”
Capo’s chart shows that the crypto strategist expects the index to plummet to around 22.30% before bottoming out. At time of writing, the Bitcoin Dominance Index is hovering above 47%.
The trader also looked at PlanB’s stock-to-flow model (S2F), which divides Bitcoin’s current supply by its annual production. Capo predicted that Bitcoin will reclaim and eventually surpass the 365-day average of the S2F en route to $100,000 before topping out somewhere well above $200,000.
As for the broader digital asset market, the crypto trader believes it is due for one more parabolic rise after the correction.
“Altcoins market cap. A last wave up is missing. There’s no wave 3-5 divergence yet.”
Looking at Cardano (ADA), Capo says that the fifth-largest crypto asset is looking so good that he’s unloading all of his Ethereum holdings buy ADA.
“Selling the rest of my ETH for ADA It’s one of the best-looking majors.”
Featured Image: Shutterstock/Mike H