An analyst known for nailing the end of the 2021 crypto cycle believes that Bitcoin’s drop below $80,000 is designed to lure BTC bears into thinking that the bull market is over.
Pseudonymous analyst Capo tells his 942,200 followers on the social media platform X that he thinks Bitcoin is now process of carving a mid-bull cycle bottom following a substantial correction from its all-time high of around $110,000.
According to the trader, BTC’s plummet to a 2025 low of $76,000 is a bear trap or a false breakdown that would lead to a sharp bullish reversal with altcoins leading the charge.
“Bear trap went lower than expected, but the local bottom should be in or very close.
A strong relief bounce is likely over the next few days, with altcoins expected to outperform Bitcoin.”
On the instant messaging platform Telegram, Capo says that he’s starting to see signs of strength for Bitcoin and altcoins in the lower time frames.
“Ideally, BTC needs to reclaim $84,000 and ETH $2,000 for bullish continuation…
Most altcoins are hitting major support after a strong correction.
Many people are panic selling at these levels. Others are waiting for lower prices.
Fundings are very negative, confirming the bearish sentiment.
There’s a lot of liquidity to the upside.”
At time of writing, Bitcoin is trading for $82,765 and Ethereum (ETH) is worth $1,926.
To support his bullish stance on altcoins, Capo says he’s closely watching the TOTAL2 chart, an alt index that tracks the market cap of all crypto assets excluding Bitcoin and stablecoins.
The trader shares a chart suggesting that TOTAL2 has successfully retested a crucial support area at $971 billion.
A bullish TOTAL2 chart indicates that the altcoin market is rallying. At time of writing, TOTAL2 is worth $1 trillion after dropping to a 2025 low of $974 billion.
Follow us on X, Facebook and Telegram
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney
