A popular cryptocurrency trader known only by his nom de guerre Capo, which has been bearish on the cryptocurrency market for months, has issued a stark warning to the community, predicting doom and gloom for leading cryptocurrencies Bitcoin, Ethereum, and altcoins.
Capo, who is known as a crypto pessimist on social media, shared with his over 750,000 followers a long message on the microblogging platform Twitter, in which he prophesied significant contractions for Bitcoin and Ethereum. In his words, his analysis hasn’t hanged even as the cryptocurrency market rebounded and prices are “still at a major resistance.”
The trader added that he has said before and maintains that recent cryptocurrency price movements “look manipulated,” and that a capitulation event “still likely and the main targets remain $12,000 for BTC and $500-$700 for ETH. Altcoins would drop 60-80% on average.” The analyst did not reveal a timeline for these events.
Capo also pointed to popular altcoins that he says are on the edge and showing signs of vulnerability or having already lost ground from this year’s bull run. His prognosis is that they are bound for new nadirs.
The trader added that he is meticulously amassing short positions in select cryptocurrencies, including Binance Coin ($BNB), Solana ($SOL), and Polygon ($MATIC). These cryptocurrencies have recently been the subject of scrutiny and have been alleged to be securities by the U.S. Securities and Exchange Commission (SEC) in lawsuits against Binance and Coinbase.
The pseudonymous analyst added that many altcoins have “already made a new low below that of 2022 and some are even reaching Covid lows.” Others, he said, have “retraced much of this year’s bear market rally and are about to make new lows,” which is why he has been building short positions against them with a low amount of leverage being used.
Per his words, he is “adding size at key resistances” in the altcoins that he believes could drop more, which he mentioned include $BNB, $TRX, $SOL, $AAVE, and $MATIC. He claimed that “all these positions are in profit except the TRX one.”
As CryptoGlobe reported, BlackRock’s recent filing for a spot Bitcoin ETF could unlock a $15 trillion crypto boom as it seemingly triggered a race to list a spot Bitcoin ETF in the United States, with some of the world’s largest financial institutions filing for such a listing.
Featured image via Pixabay.