A widely followed crypto analyst says that Bitcoin (BTC) and one Ethereum (ETH) competitor are facing significant downside risks amid recent sideways movement in the markets.
Starting with Bitcoin, pseudonymous crypto analyst Capo tells his more than 248,600 Twitter followers that Bitcoin is experiencing weak bounces, which could be short-lived.
“The bulls turned euphoric yesterday with another fake pump (short squeeze) that didn’t even break $40,000. Pumps are getting weaker and weaker, and this consolidation is coming to an end.”
According to Capo, Bitcoin is sending false signals known as bull traps that are likely to result in downward pressure on the flagship crypto asset.
“All I see is bull traps. This one is probably the last one above $40,000.”
Bitcoin is trading at $40,362 at time of writing.
Earlier this week, Capo said that the target he had set for Bitcoin to hit $23,000 is “more likely now” as he expects the correction to be “extended.”
Next up is Cardano (ADA). Capo says that the native token of the Ethereum-rival is showing even “more weakness than expected.”
Consequently, the crypto analyst says he has lowered the support level for ADA to under $0.40, a level that is about 50% lower than the current price.
“Next support moved down from $0.45-$0.50 to $0.38-$0.40, since it’s showing even more weakness than expected.”
Cardano is trading at $0.8090 at time of writing.
Last month after ADA fell below $1, Capo predicted that the ninth-largest cryptocurrency would fall below $0.50 before reversing upwards.Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
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