A widely-followed analyst is pessimistic about the trajectory of the wider crypto market and three digital assets in particular.
Starting with Bitcoin (BTC), pseudonymous crypto analyst Capo tells his 258,900 Twitter followers that he expects the flagship cryptocurrency to retrace by 50% from current levels.
Capo also says that the prices of altcoins will fall drastically as the total cryptocurrency market cap sheds over half of its value.
“I’m expecting 50-70% retracement on the entire market (50% for BTC, 60-70% for altcoins).”
Bitcoin is trading at $42,479 at time of writing. A 50% drop for Bitcoin would see it retrace to a price of around $21,000. The total crypto market capitalization is slightly above $2 trillion at time of writing.
Capo had said earlier this week that Bitcoin was likely to drop below $30,000. Capo also said that Bitcoin’s recovery from below $39,000 at the start of the week was a dead cat bounce and warned against getting “trapped above $40,000.”
Next up is Chainlink (LINK), a decentralized oracle network that allows blockchains to obtain off-chain data.
Capo says that his main target for LINK is between $5 and $5.50, over 60% lower than the current price.
“LINK
Main target: $5.00-5.50.”
Chainlink is trading at $14.25 at time of writing.
The native token of the blockchain-based virtual gaming world The Sandbox (SAND) is the third crypto asset that Capo is bearish on.
Capo says that SAND is exhibiting a descending triangle bearish pattern similar to one that Bitcoin displayed in 2018.
According to the crypto analyst, SAND could fall by more than 60% from the current price.
“SAND
Clear descending triangle, similar to BTC in 2018 with the 6k support.
Main target: $0.95-1.00.”
SAND is trading at $2.90 at time of writing.
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Featured Image: Shutterstock/David Sandron/bestfoto77
