Crypto Bear says fakeout rallies and then massive corrections are coming for Bitcoin and Ethereum
A widely followed crypto bear believes major corrections are on the way for Bitcoin (BTC) and Ethereum (ETH) after fleeting rallies.
Pseudonymous trader Capo tells his 83,873 Telegram subscribers that the possible approval of a spot Bitcoin exchange-traded fund (ETF) this week is likely to spark a short-lived rally for Bitcoin and other digital assets.
“Whales are showing great interest at the $48,000-$50,000 level. News can trigger volatility and leave big wicks. So a rise to this level and a big rejection afterwards is a likely scenario.”
The trader shares a chart that predicts Bitcoin price action “for the next few days.”
Source: Capo/Telegram
Looking at his chart, the trader expects Bitcoin to rise towards $51,000 following news of the approval of a spot market Bitcoin ETF. After the rally, he expects Bitcoin to likely fall to $30,000-$31,000 as whales “sell the news.”
The trader also predicts Ethereum will rise as high as $2,600 before a correction. And he expects other altcoins to also experience a massive correction after a brief upward movement.
“It's an interesting week ahead of us. ETF news should be released soon. As explained these days, I expect the market to pump first. BTC at $48,000 to $50,000, ETH at $2,500 to $2,600. Alts should pump harder, especially low caps. After that, which should take a few days, the market should reach a very important local peak. Then I will start opening swing short positions and aim for new lows.”
Looking further ahead, the trader stands by his long-standing prediction that Bitcoin will eventually break to $12,000, which his chart suggests will happen around April.
“BTC-HTF idea (high time frame)”
Source: Capo/Telegram
Bitcoin is trading for $46,776 at the time of writing, up 7% in the last 24 hours. Meanwhile, Ethereum is trading at $2,314 at the time of writing, up 4.7% in the last 24 hours.
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