The cryptocurrency market is always full of surprises, and the recent drop in Bitcoin’s price below $80,000 has caught the attention of many traders and analysts. One analyst, known as Capo, who accurately predicted the end of the 2021 crypto cycle, believes that this drop is actually a bear trap designed to deceive BTC bears into thinking that the bull market is over.
Capo, who has a significant following on the social media platform X, suggests that Bitcoin is currently in the process of establishing a mid-bull cycle bottom after experiencing a substantial correction from its all-time high of around $110,000. Despite dropping to a low of $76,000, Capo remains optimistic and sees this as a false breakdown that will likely lead to a strong bullish reversal, with altcoins taking the lead in the market.
On Telegram, Capo points out that there are signs of strength for both Bitcoin and altcoins in the lower time frames. He highlights the importance of Bitcoin reclaiming $84,000 and Ethereum reaching $2,000 for a bullish continuation. Capo also notes that many altcoins are hitting major support levels after a significant correction, and he believes that there is a lot of liquidity to the upside.
Currently, Bitcoin is trading at $82,765, while Ethereum is valued at $1,926. To support his bullish stance on altcoins, Capo closely monitors the TOTAL2 chart, an alt index that excludes Bitcoin and stablecoins. According to Capo’s analysis, TOTAL2 has successfully retested a crucial support level at $971 billion, indicating a potential rally in the altcoin market.
A bullish TOTAL2 chart suggests that the altcoin market is on the rise, with the index currently valued at $1 trillion after dropping to a low of $974 billion. This positive trend in the altcoin market aligns with Capo’s prediction of a strong relief bounce in the coming days, with altcoins expected to outperform Bitcoin.
In conclusion, while the recent drop in Bitcoin’s price may have caused panic among some traders, Capo’s analysis points towards a potential bullish reversal in the market. As always, it’s essential for investors to stay informed and monitor the market closely to make informed decisions. Subscribe to receive email alerts and stay updated on the latest price action in the cryptocurrency market. Follow us on Twitter, Facebook, and Telegram for more updates.