Trader who nailed Bitcoin Meltdown unveils new warning for crypto traders
A crypto analyst who called Bitcoin’s crash below $30,000 is issuing yet another warning to traders, saying today’s market rally is likely a bull trap.
The pseudonymous analyst known as Crypto Capo recount his 321,000 Twitter followers that he still expects major price drops for altcoins and BTC in the near term.
– crypto cap (@CryptoCapo_) May 30, 2022
“I’m still expecting the same thing. 40 to 60% drop on altcoins, 25 to 30% on BTC. 1 to 3 months recovery after that.
According to Capo, the last time the S&P 500 (SPX) made new highs, the crypto king was making lower lows. We then saw further bearish momentum for the main digital asset following an SPX reversal. capo Remarks that SPX is currently at a key resistance level, which could cause it to reverse again.
“Last time SPX rallied for a new high as BTC hit lower highs, we saw a bearish continuation once SPX reversed. Now SPX is at resistance.
Cap then revealed that he sold his entire portfolio of altcoins other than stablecoins ahead of the stock market crash that saw many digital assets lose 70-99% of their value earlier this month.
“I was all-in alts during the bull run, when BTC went from $10,000 to $69,000, then I sold them all with BTC at $41,500 on average, avoiding a 70-99% decline in over the past few weeks. Now still in stablecoins waiting to re-enter the market.
Bitcoin is changing hands at $30,592 at the time of writing, a 7.5% increase from its seven-day low of $28,448.
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Feature image: Shutterstock/Natalia Siiatovskaia/NextMarsMedia