A popular cryptocurrency trader, known as Capo, notorious for his bearish outlook on the market, has issued a dire warning to the crypto community. Capo, followed by more than 750,000 users on Twitter, predicts a significant contraction for the leading cryptocurrencies Bitcoin and Ethereum, along with a substantial drop in altcoin prices.
Doom Capo’s prediction:
Capo, known for his crypto pessimism, believes the recent price movements of cryptocurrencies appear to be manipulated and anticipates capitulation events. He suggested that Bitcoin could drop to $12,000, while Ethereum could drop to $500-$700. Altcoins, on average, may see a 60-80% decline. Trader, however, does not specify a timeline for these events.
Altcoins on the Edge:
Capo also highlighted a vulnerable altcoin which he believes is on the verge of a new low. He asserted that they have shown signs of vulnerability or have lost ground from this year’s gains. Traders have accumulated short positions in cryptocurrencies such as Binance Coin, Solana, and Polygon, which have faced SEC scrutiny and accusations of being securities.
Building a Short Position:
Capo disclosed his strategy for building short, low-leverage positions in altcoins he believes are likely to fall further. Among the cryptocurrencies mentioned are Binance Coin, TRON, Solana, AAVE, and Polygon. He claims that this position is profitable, except for TRON, and emphasizes adding sizes to the main resistance to maximize profit potential.
Crypto trader Capo’s pessimistic views and warnings of a contraction in leading cryptocurrencies Bitcoin and Ethereum, along with significant altcoin declines, have raised concerns within the crypto community. Investors will monitor market developments closely to evaluate the accuracy of these predictions.