Crypto Analyst Predicts 20% Bitcoin Drop After $100,000 Bull Trap
1min read An analyst who accurately predicted the 2022 crypto collapse has warned that Bitcoin (BTC) and Solana (SOL) are likely to reach new lows this year. The pseudonymous trader, known as Capo, shared his insights with his 121,564 subscribers on the instant messaging platform Telegram.
Capo anticipates that Bitcoin will initially rally to as high as $100,000, setting a bull trap that will lure traders into believing the asset is bullish. However, he predicts that this rally will be followed by a significant capitulation event, driving BTC down to his downside target of around $63,000. Despite Bitcoin's recent drop below its immediate support level of $84,000, Capo remains optimistic about the bull trap scenario. He notes that most altcoins are holding higher lows above high time frame support, which supports his bullish outlook. Capo emphasizes the importance of a strong reclaim of the $84,000 level, ideally $85,000, to confirm the strength of the bull trap.
Ask Aime: What is the predicted path for Bitcoin's price this year after the recent drop?
Turning to Solana, Capo predicts that SOL will experience a strong upward movement before collapsing to his downside target of $100. He anticipates that SOL will rally towards $180-$200 before the eventual drop. At the time of writing, SOL is valued at $125.
Capo's analysis suggests a cautious approach for investors, as the predicted bull traps and subsequent capitulation events could lead to significant price volatility. His insights are based on technical indicators and the confluence with altcoins, which he believes are holding higher lows above high time frame support. Investors are advised to conduct their own due diligence before making any high-risk investments in Bitcoin, cryptocurrency, or digital assets.
