Bitcoin and Two Top-10 Ethereum Competitors Set for Strong Bounce Before Crashing Lower, Top Analyst Warns
A widely followed analyst with a successful track record of predicting market pullbacks is updating his views on several of the top crypto assets.
The pseudonymous trader known as Capo says his 487,100 Twitter followers that in light of the recent rally in the S&P 500 futures market, Bitcoin (BTC) is also likely to recapture the $23,000 level before subsequently collapsing.
“SPX futures bounce off support as expected. Resistance between 4,220 and 4,280, to form a lower high. Only a matter of time before BTC follows to $23,000-$23,500, also to form a lower high (w2 of w5).
Then we should see rejection from there and a continuation of the downward trend.”
As for how low Bitcoin will go, Capo says the king crypt could dip to as little as $16,000.
“Main resistances: $22,500 and $23,500. Any short squeeze to these levels is a good selling opportunity.
Major Support: $19,000 This is the ultimate bearish confirmation for new lows.
Main goal: same as always, $16,000. Very likely in the coming weeks.”
The analyst is generally bearish Outlook for Bitcoin dates back to March 12, when the leading crypto-asset traded around the $39,000 level. He said at the time,
“Clean break on $38,000 = $35,000. Break on $35,000 = $30,000.
Below $30,000, it should reach the main target of $21,000-$23,000.”
Bitcoin is currently trading sideways and priced at $21,677.
Moving on to the scalable blockchain platform Cardano (ADA), the analyst thinking it is possible the altcoin could rise from a recent low of $0.44 to between $0.48 and $0.52.
“ADA long idea, good [risk/reward]. Not financial advice.”
At the time of writing, Cardano is up 1.73% and priced at $0.47
The map specialist concludes his cryptoanalysis with to explore what’s next for the layer-1 protocol Solana (SOL).
While answering a question about the altcoin’s ability to reverse support and resistance, Capo says SOL is likely to hit a lower high after trying to recover from a mid-August price drop, before eventually continuing below $30- the level.
“First up to form a lower high, then down.”
Solana itself is traded in the last 24 hours and has a value of $35.95.
SOL had reached almost $48 back on August 14th before dropping below $35 on the 20th.
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Featured image: Shutterstock/Everyonephoto Studio/Nikelser Kate
