A veteran trader known for calling the last big Bitcoin (BTC) collapse this year is predicting an imminent relief rally in anticipation of the Federal Open Market Committee (FOMC) meeting Wednesday morning.
The pseudonymous trader known as Capo tells his 525,000 Twitter followers that he’s expecting Bitcoin and the crypto markets to rally leading into the meeting and eventually breaking back down to continue the downtrend.
“Good morning.
Expecting a scam pump pre FOMC and downtrend continuation afterwards. How high could it go? First target would be 20,300-20,600. If it breaks that level, we could see 22,800-23,000.
Remember that every bounce is a short opportunity.”
Officials at the FOMC are expected to raise interest rates once again, potentially putting more pressure on risk-on assets like cryptocurrencies. A “scam pump” in crypto refers to a burst of volatility, often in the opposite direction of the trend before reversing after it traps or “scams” traders.
Capo reiterates that after a sudden rally, he gives a downward target somewhere in the ballpark of $14,000 to $16,000, or up to 27% away from current prices.
“BTC plan.”
Outside of Bitcoin, the closely followed analyst is also looking at the altcoin market for “massive” opportunities to sell.
Says Capo,
“After this bounce, I will look for massive shorts on altcoins.”
At time of writing, Bitcoin is trading at $19,284, 72% down from its all-time highs. A dip to Capo’s lowest target of $14,000 would represent a full correction of 79.8% from the record high of $69,000.
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