The crypto strategist who nailed Bitcoin’s (BTC) crash below $30,000 this year warns that a sell-off event across the altcoin markets is imminent.
Pseudonymous analyst Capo tells his 477,300 Twitter followers that he’s keeping a close watch on the OTHERS chart, which tracks the total market capitalization of the top 125 crypto assets excluding Bitcoin and other large-cap altcoins.
Capo says that the OTHERS chart is set to roll over after failing to take out resistance at $160 billion.
“Some exit scam pumps on altcoins could give you the illusion that we are in an altseason. Far from true. Reality is that the average market cap of the altcoins hasn’t even doubled, and it’s doing a rounded test of a macro resistance. Don’t be fooled. New lows are likely.”
At time of writing, the OTHERS chart is hovering at $153 billion. A move to Capo’s target of around $66 billion suggests a downside risk of over 55%.
Looking at Ethereum (ETH), Capo says the leading smart contract platform is currently testing a major resistance level.
“This level is much more important. Also, the fact that the move is being corrective says it all.”
As for Bitcoin, Capo says he sees one more rally for the king crypto before resuming its downtrend.
“$25,000 reached but no bearish signs yet on [the] low timeframes. We could see another leg up to $25,400-$25,500, but in my opinion, the top of this bear market rally is very close. Most altcoins are reaching major resistances.”
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Featured Image: Shutterstock/DanieleGay/Sashkin
Source: https://dailyhodl.com/2022/08/16/analyst-who-called-bitcoin-collapse-this-year-issues-fresh-warning-for-altcoin-traders/
