The pseudonymous crypto analyst Capo says that the recent rallies in the cryptocurrency market mean nothing, and new lows are still likely.
Bitcoin (CRYPTO: BTC) has rallied 21% in the last seven days, and Ethereum (CRYPTO: ETH) has rallied 23%. But Capo says the market’s bounce hasn’t invalidated his bearish outlook.
He believes Bitcoin still needs to successfully break its resistance around the $21,000 to $22,000 area.
1) High timeframe.$BTC is still testing major resistance. Weekly close will be key, but there’s no bullish confirmation yet. pic.twitter.com/3nMPjTXzjR
— il Capo Of Crypto (@CryptoCapo_) January 14, 2023
2) Lower timeframe.$BTC is in a ltf parabolic move. But there’s a problem for bulls. This move is already overextended. The base of the parabola was weak, and when this ltf trend breaks it often results in sharp declines and full reversals. pic.twitter.com/edq7tM25PI
— il Capo Of Crypto (@CryptoCapo_) January 14, 2023
At the time of writing, Bitcoin was trading at $20,891, up by 23% in the last seven days.
According to the crypto analyst, similar resistance is visible in the case of Ethereum. Therefore, he doubled down on bearish price targets, anticipating a drop to $600 for ETH.
This is also clear on $ETH, TOTAL and OTHERS. pic.twitter.com/O5I0Zrr3ts
— il Capo Of Crypto (@CryptoCapo_) January 14, 2023
At the time of writing, Ethereum was trading at $1,547, up by 22% in the last seven days.
Earlier in November, Capo predicted that Bitcoin would head to new bear market lows.
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