A popular analyst with a solid track record of predicting market retracements is issuing warnings about two of the top crypto assets.
In a chart mapping out ADA’s price fluctuations dating back to May, Capo focuses on an ascending wedge pattern starting with a rally which began in late July. The altcoin nearly captured the $0.60 level on August 16th before marketwide woes caused the token to lose nearly 25% last week.
The analyst also maps out a series of peaks and valleys which he believes will ultimately see Cardano falling to the $0.28 to $0.30 range.
At time of writing, Cardano is up slightly and trading for $0.46. A drop to $0.29 would mean an additional 37% capitulation for ADA.
Capo expects that a dead cat bounce (DCB) will temporarily revive Bitcoin to around $23,000 before falling back toward $19,000, which might even put a brief low of $16,000 in play before pushing back above $20,000.
“DCB (w2) to $22,500 or $23,500, then bearish continuation.
Break below $19,000 = $16,000, which should be the local bottom.”
Bitcoin is currently flat on the day and changing hands for $21,301.
The analyst concludes by sharing his thoughts about the overall crypto markets, saying,
“Market is bearish. Every bounce is a good selling opportunity.
Being out of the market until new lows is smart.”Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
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