The popular crypto analyst who nailed Bitcoin’s (BTC) 2022 collapse says that the current market rally is likely a bull trap.
The pseudonymous analyst known in the industry as Capo tells his 698,800 Twitter followers that he’s forecasting a market correction even as Bitcoin smashes through the $17,000 mark.
Many altcoins have also experienced a recent surge in value. But Capo warns that Bitcoin is rallying straight into a resistance level just below $20,000 and is more than likely setting up for another leg down, perhaps to about $12,000, a more than 30% decline from its $17,324 price at time of writing.
“Zoom out. Ask yourself: why am I buying here? Is it because of FOMO(fear of missing out)? You are seeing random altcoins having random pumps, same as have been happening since the start of the downtrend, and you feel the need to buy. You could think this might be the bottom. However, there’s not a single bullish confirmation yet.
Just look. It’s there, right before your eyes. Bearish trend is intact. Bitcoin and most of the market are testing broken supports as resistances. We have seen this over and over. I’m not buying.”
Capo is also forecasting a deep dive for the S&P 500 (SPX), which has held a tight correlation with the crypto markets. He predicts the SPX will plummet as low as $3,180 in February before rallying. At time of writing, the SPX is at 3,940 points.
Although Capo is bearish, fellow crypto strategist Kaleo says the market rally is just starting.
Looking at Ethereum (ETH), Kaleo says the top smart contract platform is heading for another leg up to $1,400. At time of writing, Ethereum is changing hands at $1,343, up more than 12% from its $1,192 low at the start of the year.
“This rally is just getting started. Send it higher.”
Looking at his chart, Kaleo is predicting ETH will enter the $1,500 price range later this month.
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Source: https://dailyhodl.com/2023/01/09/bull-trap-analyst-who-called-last-collapse-says-crypto-rally-will-turn-into-massive-correction/