A widely followed crypto bear believes that major corrections are coming for Bitcoin (BTC) and Ethereum (ETH) after fleeting rallies.
Pseudonymous trader Capo tells his 83,873 Telegram subscribers that the possible approval this week of a spot Bitcoin exchange-traded fund (ETF) will likely ignite a short-lived rally for Bitcoin and other digital assets.
“Whales are showing strong interest in the $48,000-$50,000 level. News can trigger volatility and leave large wicks. So a pump to that level and a big rejection afterward is a likely scenario.”
The trader shares a chart predicting Bitcoin’s price action “for the next few days.”
Looking at his chart, the trader suggests that Bitcoin will soar toward $51,000 upon news of the approval of a spot market Bitcoin ETF. After the rally, he suggests that Bitcoin will likely correct down to the $30,000-$31,000 as whales “sell the news.”
The trader also predicts Ethereum will rally to as high as $2,600 before correcting. And he expects other altcoins to also undergo a massive correction after a brief move to the upside.
“Interesting week ahead. ETF news should be released soon. As explained these days, I expect the market to pump first. BTC to $48,000-$50,000, ETH to $2,500-$2,600. Alts should pump more, especially low caps. After this, which should take a few days, the market should reach a very important local top. That’s when I will start opening swing short positions, aiming for new lows.”
Looking further out, the trader maintains his long-standing prediction that Bitcoin will eventually collapse to the $12,000 level, which his chart suggests will happen around April.
“BTC HTF (high timeframe) idea.”
Bitcoin is trading for $46,776 at time of writing, up 7% in the last 24 hours. Meanwhile, Ethereum is trading for $2,314 at time of writing, up 4.7% in the last 24 hours.
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Source: https://dailyhodl.com/2024/01/09/crypto-bear-says-fakeout-rallies-and-then-massive-corrections-coming-for-bitcoin-and-ethereum/