In a series of tweets this week, Capo attempts to sort out what lies ahead for Bitcoin and Ethereum holders.
After crashing to just over $ 30,000 on May 19, Capo explains that Bitcoin may be bracing for a V-shaped recovery.
Capo compares Bitcoin’s recent flash crash to the S&P 500 (SPX) correction in 1987 when SPX quickly went from the $ 340 region to around $ 215.
After the SPX crash, the chart rebounded and hit a new three-year high. If Bitcoin can consolidate above $ 30,000, Capo explains, the flagship cryptocurrency might not record lower lows from here.
“Disclaimer: Fractals are only an aid for direction. They don’t always play. If the price consolidates below the $ 30,000 mark and shows weakness, this fractal is no longer valid and you can expect the price to drop. “
Capo also believes the dominance of Bitcoin, or BTC.D, has not hit its cycle low, meaning he believes altcoins will still be able to capture more market share before the end of the market. bullish race. However, when the BTC.D chart hits bottom, Capo will admit that the crypto bull run has ended.
“BTC.D. The domination of Bitcoin makes a DCB (rebound of the dead cat). I don’t see any inferior sign. When this chart hits its low point, the bullish cycle is likely to end.
If you have any doubts, that’s very optimistic. “
Regarding Ethereum, Capo notes that the asset’s recent price action looks suspiciously similar to ETH when it collapsed in March 2020. He predicts that the asset has likely bottomed against the dollar. American and will now begin a slow ascent.
“ETH. March 2020 vs now updated. The last hollow must hold. “
The trader also remains bullish on two low cap altcoins in their BTC pairs. Capo mentions that the Sandbox ecosystem’s utility token, SAND, looks set to work against Bitcoin.
“SAND / BTC. Is it me or does it look awesome? ”
Additionally, the analyst tells his 118,000 Twitter followers that despite a devastating week for most altcoins, the high-profile Polkadot (DOT) Phala Network (PHA) project looks attractive in its Bitcoin (PHA / BTC) pair.
«PHA / BTC. BULLISH «
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Image en vedette: Shutterstock / wacomka