Crypto Bear Warns of Fakeout Rallies and Major Corrections for Bitcoin and Ethereum
A well-known crypto bear is cautioning that Bitcoin (BTC) and Ethereum (ETH) could experience significant corrections following brief rallies. The trader, known as Capo, predicts that the potential approval of a spot Bitcoin exchange-traded fund (ETF) this week may trigger a short-lived rally for digital assets.
Capo suggests that whales are currently showing interest in the $48,000-$50,000 range, which could result in increased volatility and sharp price movements. He anticipates a pump to that level followed by a substantial rejection.
According to Capo’s chart analysis, Bitcoin could surge to $51,000 if the spot market Bitcoin ETF is approved. However, he expects a subsequent correction to the $30,000-$31,000 range as whales sell off their holdings.
Capo also predicts a rally for Ethereum up to $2,600 before a correction occurs. Additionally, he anticipates other altcoins experiencing significant corrections after a brief upward movement.
In his long-term prediction, Capo maintains that Bitcoin will eventually drop to $12,000 around April.
As of now, Bitcoin is trading at $46,776, with a 7% increase in the last 24 hours. Ethereum is trading at $2,314, with a 4.7% increase in the last 24 hours.
Hot Take: Brace for Volatility and Corrections in the Crypto Market
A prominent crypto bear warns that Bitcoin and Ethereum may face fakeout rallies followed by significant corrections. The possible approval of a spot Bitcoin ETF could trigger a short-term surge in prices, but the trader expects whales to sell off their holdings and lead to a market correction. This prediction aligns with his long-standing belief that Bitcoin will eventually drop to $12,000. It’s crucial to monitor market movements closely and be prepared for increased volatility in the coming days.
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