A crypto analyst who called Bitcoin’s meltdown below $30,000 is issuing a fresh warning to traders, and says today’s market rally is likely a bull trap.
The pseudonymous analyst known as Crypto Capo tells his 321,000 Twitter subscribers that he still expects sizable price drops for altcoins and BTC in the short term.
“Still expecting the same. 40-60% drop on altcoins, 25-30% on BTC. 1-3 months recovery after that.”
According to Capo, the last time the S&P 500 (SPX) rallied to new highs, the king crypto was making lower lows. We then saw further bearish momentum for the leading digital asset after an SPX reversal. Capo notes that SPX is currently at a key resistance level, which could have it reversing once again.
“Last time SPX rallied making a new high while BTC was making lower highs, we saw bearish continuation once SPX reversed. Now SPX is at resistance.”
Capo then reveals that he sold his entire altcoin portfolio other than stablecoins before the market crash which saw many digital assets shed a staggering 70-99% of their value earlier this month.
“I was all-in alts during the bull run, when BTC went from $10,000 to $69,000, and then sold them all with BTC at $41,500 on average, avoiding a 70-99% drop during these past weeks. Now still in stablecoins waiting to re-enter the market.”
Bitcoin is changing hands at $30,592 at time of writing, a 7.5% increase from its seven-day low of $28,448.
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inboxFeatured Image: Shutterstock/Natalia Siiatovskaia/NextMarsMedia