dailyhodl.com
The popular crypto analyst who accurately called the current market collapse says that the altcoin market still has much further to drop than traders realize.
The pseudonymous trader known as Capo tells his 417,000 followers that even though most altcoins are way below their all-time highs, a sizeable haircut is around the corner.
“Expecting 45-50% drop on altcoins from current prices.”
Backing up his thesis, Capo looks to Bitcoin dominance, which compares the market cap of BTC to the rest of the crypto market.
Traditionally, a rising Bitcoin dominance suggests that traders are fleeing altcoins to a less risky allocation of BTC.
According to Capo, Bitcoin dominance is setting up for a surge that will see altcoins get slaughtered.
“BTC.D update
Same idea, expanding diagonal for wave C. Altcoins should drop more than BTC.”
Looking at Ethereum (ETH), the market’s biggest altcoin, Capo has a downward target in mind. According to the analyst, ETH is on its way down to levels not seen since late 2020.
“ETH
Decreasing volume into resistance, and looking like a corrective move.
Next support: $700-800″
As for Bitcoin, the analyst says that the buyers who should’ve brought support to Bitcoin are now nowhere to be seen.
“The bids that were holding the price have been pulled. Bulls are scared or they weren’t really there, just whales pushing the price up to sell higher. Get ready.”
Capo says BTC is on the edge of collapsing to new local lows one last time before reversing. The crypto analyst has a downside target somewhere near $16,000, based on his chart, or about a 20% drop in BTC.
“BTC
Break of the lower dark zone = bearish confirmation = new lows.”
At time of writing, Bitcoin is trading at $20,037, down 2% on the day.