The pseudonymous cryptocurrency expert, Capo of Crypto, who predicted the fall of Bitcoin (BTC) earlier this year is now delivering a warning to investors about an oncoming collapse of alternative cryptocurrencies.
According to him, the situation for alternative cryptocurrencies is far more dire than it seems to be for the financial markets.
He went on to say that even if altcoins were to drop by an average of 50-55% from this point, pure shitcoins could easily drop by 60-90%.
Recently, the analyst forecasted record bear market lows for both Bitcoin, the world’s largest cryptocurrency, and Ethereum (ETH), which is now the biggest altcoin by market value. According to Capo, the price of bitcoin might go as low as $12,000, while the price of the most popular smart contract platform could fall to the $600-$650 range.
In spite of the fact that Bitcoin bulls have been successful in igniting a recovery from the current bear market bottom of roughly $15,700, Capo argues that the latest bounce is noticeably weaker in comparison to BTC’s prior surges since June this year.
In his words:
“Every bounce is smaller. Lower lows and lower highs. Support is becoming resistance. $12k is like a magnet.”
He shared this chart alongside his analysis:
Source: Capo of Crypto
A move to Capo’s aim of $12,000 would signify a loss for the king cryptocurrency of more than 28%. Additionally, the analyst claims that market participants are most likely unprepared for the sharp decline.
He goes on to say that the present trading climate in crypto and the stock market looks to be setting an ideal backdrop for a real surrender, which he believes is imminent.
According to Capo, the stock markets are in the red, cryptocurrencies are breaching critical supports, indicators are heading downward, and bulls are becoming smug and ecstatic about little price pumps.
The state of the cryptocurrency market as a whole is not too great at the moment. However, it’s possible that we’ll witness a revival in 2023. And I intend to keep my fingers crossed that it does.