High-profile pseudonymous trader Capo is laying out the path ahead for Bitcoin, Ethereum and two low-cap crypto assets as the entire market struggles to recover from a major correction.
In a series of tweets this week, Capo attempts to sort out what is in store for Bitcoin and Ethereum holders.
After its crash to just above $30,000 on May 19th, Capo reasons that Bitcoin may be preparing to make a V-shaped recovery.
Capo compares Bitcoin’s recent flash crash to the S&P 500 (SPX) correction in 1987 when SPX rapidly plummeted down from the $340 region to about $215.
After the SPX crash, the chart bounced and put in a new high within a three-year period. If Bitcoin can consolidate above $30,000, reasons Capo, the flagship cryptocurrency may not put in any lower lows from here.
“Disclaimer: fractals are just a help for direction. They don’t always play out. If price consolidates below $30,000 showing weakness, this fractal is no longer valid, and you can expect lower prices.”
Capo also believes that Bitcoin dominance, or BTC.D, has not reached its cycle bottom, meaning that he believes altcoins will still be able to capture more of the market share before the bull run is over. When the BTC.D chart bottoms out, however, Capo will concede that the crypto bull run has terminated.
“BTC.D. Bitcoin dominance is doing a DCB (dead cat bounce). I don’t see any bottom signs. When this chart reaches its bottom, the bull cycle is likely to end.
If you have doubts, this is very bullish.”
As for Ethereum, Capo notes that the asset’s recent price action looks eerily similar to ETH’s price action when it crashed in March of 2020. He predicts that the asset has likely bottomed out against the US dollar and will now start a slow climb back up.
“ETH. March 2020 vs. now update. Last low must hold.”
The trader also remains bullish on two low-cap altcoins in their BTC pairs. Capo mentions that the utility token of the Sandbox ecosystem, SAND, looks prepared to run against Bitcoin.
“SAND/BTC. Is it me or this looks f****** awesome?”
Additionally, the analyst tells his 118,000 Twitter follwers that despite a devastating week for most altcoins, top Polkadot (DOT) project Phala Network (PHA) is looking appealing in its Bitcoin pair (PHA/BTC).
Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/wacomka
Credit: Source link