A widely followed crypto trader is outlining the path forward for three major digital assets, including Bitcoin (BTC) and Ethereum (ETH).
Starting with BTC, pseudonymous crypto trader Capo tells his 443,000 Twitter followers that the flagship digital asset will hit new lows if it falls below the $19,000 level.
According to Capo, Bitcoin’s recent rise above $20,000 was a “dead cat bounce,” which was met by selling on the FTX crypto exchange. A dead cat bounce is a move to the upside in a bearish trend.
“Dead cat bounce to $20,000 again to punish late shorters. At the top of it, FTX started pushing down. Clear corrective move to the upside.
Nothing has changed. Break below $19,000 = new lows.”
Bitcoin is trading for $20,620 at time of writing.
Capo says the Bitcoin bottom that formed around $30,000 mid-last year mirrors the current price action. The crypto analyst is targeting a floor price for BTC between $15,800 and $16,200.
“$30,000 bottom formation (June-July 2021) vs. current price action
Expecting deviation below the current range low, which is $17,700. Main target remains $15,800 – $16,200.”
Next up is Ethereum (ETH). The crypto trader says a fall below $1,000 by the second-largest digital asset by market cap could trigger a plunge of over 30% from the current price.
Testing previous all-time high as resistance and forming a corrective move. Bearish.
Clean break below $1,000 = $600-700.”
Ethereum is trading for $1,200 at time of writing.
Capo concludes his analysis with Cardano (ADA), saying he is “very bearish” on the eighth-largest crypto asset by market cap.
Support broken and now tested as resistance. Very bearish.”
Cardano is trading for $0.42 at time of writing. Earlier this week, Capo said Cardano’s next support level is $0.29 to $0.31.
Sixth touch of support. Getting weaker and weaker.
Next support: $0.29 – $0.31.”
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