dailyhodl.com
An analyst who accurately called the 2022 crypto meltdown is warning that Bitcoin ($BTC) and Solana ($SOL) are likely to print new lows this year.
Starting with Bitcoin, pseudonymous trader Capo tells his 121,564 subscribers on the instant messaging platform Telegram that he sees $BTC initially rallying to as high as $100,000 to set a bull trap.
A bull trap is a false signal, luring traders into thinking that an asset is bullish, but instead, the price abruptly reverses and drops.
According to Capo, the rally will set the stage for $BTC to witness a massive capitulation event en route to his downside target of around $63,000.
“$BTC plan.”
Capo also notes that he thinks the bull trap idea is still valid, even though $BTC has fallen below its immediate support.
“$BTC has broken below $84,000, which isn’t great for the short-term bullish scenario. However, this still looks like a bear trap to me. Based on indicators and the confluence with altcoins, most of which are holding higher lows above high time frame support, I remain bullish.
That said, I’d really like to see a strong reclaim of $84,000 (ideally $85,000) soon to confirm strength.”
A bear trap deceives traders into thinking that an asset will head to lower levels, but then the price reverses to the upside.
At time of writing, Bitcoin is trading for $82,936.
Turning to Solana, Capo predicts that $SOL will also spark a strong leg up before collapsing to his downside target of $100.
“$SOL looking good for a bullish move towards $180-$200.”
At time of writing, $SOL is worth $125.
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