High-profile pseudonymous trader Capo clears the way for Bitcoin, Ethereum, and two low-cap crypto assets as the entire market struggles to recover from a major correction.
In a series of tweets this week, Capo is trying to figure out what to expect for Bitcoin and Ethereum holders.
After crashing to just over $ 30,000 on May 19, Capo grounds that Bitcoin may be preparing for a V-shaped rebound.
Capo compares Bitcoin’s most recent flash crash to the S&P 500 (SPX) correction in 1987, when SPX quickly fell from $ 340 to around $ 215.
After the SPX crash, the chart rebounded and reached a new high within three years. If Bitcoin is able to consolidate more than $ 30,000 for the sake of Capo, the flagship cryptocurrency cannot hit lower lows from here.
“Disclaimer: Fractals are just a guide. They don’t always play out. If the price consolidates below $ 30,000 and shows weakness, this fractal is no longer valid and you can expect lower prices. “
Capo also believes Bitcoin dominance (BTC.D) has not hit its cycle low, meaning he believes that altcoins can gain even more market share before the bull run is over. However, when the BTC.D chart hits its bottom, Capo admits that the Crypto-Bull run has ended.
“BTC.D. Bitcoin dominance is a DCB (Dead Cat Bounce). I don’t see any lower signs. When this chart hits its bottom, the bull cycle will likely end.
When in doubt, this is very bullish. “
Regarding Ethereum, Capo notes that the recent price movement of the asset looks eerily similar to the price movement of ETH when it crashed in March 2020. He predicts that the asset has likely bottomed against the US dollar and is now slowly rising again.
“ETH. March 2020 vs. now update. The last low must hold. “
The trader remains optimistic even with two lowcoin altcoins in their BTC pairs. Capo mentions that the sandbox ecosystem’s utility token, SAND, appears ready to run against Bitcoin.
“SAND / BTC. Is it me or does that look damn good? “
Additionally, the analyst tells his 118,000 Twitter followers that the top polkadot (DOT) project Phala Network (PHA) looks appealing for most of the altcoins in its bitcoin pair (PHA / BTC) despite a devastating week.
“PHA / BTC. BULLISH ”
Don’t Miss A Beat – Subscribe to send crypto email notifications straight to your inbox
Follow us on Twitter, Facebook and Telegram
Surf the Daily Hodl Mix
Featured image: Shutterstock / Wacomka