A well-known crypto analyst, who accurately predicted the 2021 market crash, is forecasting a significant market rebound. They believe the recent Bitcoin dip below $80,000 is a “bear trap,” designed to trick investors into thinking the bull market is over.
A Bottoming Out?
The analyst, known as “Capo,” argues that Bitcoin is currently forming a bottom after a substantial correction from its all-time high of around $110,000. They predict a strong upward bounce in the coming days, with altcoins leading the way. Capo suggests that Bitcoin’s drop to around $76,000 was a temporary low point.
Altcoins to Outperform Bitcoin?
Capo points to several factors supporting their bullish outlook:
- Lower Time Frames Showing Strength: The analyst is seeing positive signs in shorter-term Bitcoin and altcoin charts.
- Key Price Levels: They believe Bitcoin needs to reclaim $84,000 and Ethereum $2,000 to confirm the bullish trend.
- Altcoin Support:
Many altcoins have hit major support levels, creating a potential buying opportunity. - TOTAL2 Index: Capo highlights the TOTAL2 index (market cap of all crypto assets excluding Bitcoin and stablecoins) as a key indicator. The index’s retest of a crucial support level suggests a potential altcoin rally. At the time of writing, TOTAL2 is valued at around $1 trillion.
- Market Sentiment: While acknowledging negative investor sentiment and low funding, Capo believes there’s significant potential for upward movement.
Disclaimer
It’s important to remember that this is just one analyst’s opinion. Cryptocurrency investments are inherently risky, and you should always conduct your own thorough research before investing.
