Crypto Bear Calls for Massive Bitcoin (BTC) and Ethereum (ETH) Drops Plus Altcoin Capitulation

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A widely followed crypto trader is warning market participants that he expects massive declines ahead for digital assets.

In a lengthy post, pseudonymous crypto-bear trader Capo tells his 766,600 Twitter followers that he envisions Bitcoin (BTC) falling towards the $12,000 level and Ethereum (ETH) plunging between $500 and $700. $, although no specific time frame is given. .

The strategist, who has remained bearish on crypto assets despite this year’s rally, also says he expects a capitulation in altcoins that would see them lose more than half their value.

The analysis has not changed. The price is still at a major resistance and as said before, the move looks manipulated. A capitulation event is still likely and the main targets remain $12,000 for BTC and $500-$700 for ETH.

Altcoins would drop 60-80% on average.

Capo says many altcoins are showing signs of weakness or have already pulled back from this year’s rally and are likely to reach new lows.

The trader says he is building short positions in a handful of crypto assets, including Binance Coin (BNB), Solana (SOL), and Polygon (MATIC), all of which have recently been deemed securities by the US Securities and Exchange Commission (SEC ).

Many altcoins have already hit new lows below 2022 and some are even hitting Covid lows. Others have retraced much of this year’s bear market rally and are poised to hit new lows.

That’s why I’ve built medium-term short positions (with low leverage) in which I add size at key resistances and in altcoins that I think could drop further (BNB, TRX, SOL, AAVE and MATIC). All these positions are in profit except that of TRX.

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Featured Image: Shutterstock/Zaleman

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