A popular trader known for staying consistently bearish throughout 2022 says recent rallies mean nothing and another downtrend is imminent.
Pseudonymous trader Capo tells his 703,000 Twitter followers that his bearish forecast hasn’t been invalidated by the major market upleg, which has seen Bitcoin (BTC) up 21%, Ethereum (ETH) up 23% and many altcoins up 30% or more exploded last seven days.
According to Capo, BTC is still unsuccessful break its most critical resistance is in the $21,000-$22,000 range.
“The market is recovering faster than expected. That’s a certainty. Well… is the bearish scenario obsolete?
I’ll explain why I think new lows are still likely…
BTC is still testing major resistance. The weekly close will be crucial but there is no bullish confirmation yet.”
Source: Capo/Twitter
Capo says similar resistance is present on the charts of Ethereum, total crypto market cap (TOTAL) and total altcoin market cap (OTHERS). He is doubling down bearish price targets on all instruments, including $600 for ETH.
“This is also clear for ETH, TOTAL and OTHERS.”
Source: Capo/Twitter
Source: Capo/Twitter
Source: Capo/Twitter
The trading veteran also sees weakness in the stock market, which has mostly had a directional correlation with cryptocurrencies in recent years. He says the S&P 500 is making repeated lower highs and predicts that this quarter’s earnings season will not end well for most of the large companies included in the index.
“The downtrend of the traditional markets is also intact. SPX is making lower highs all the time and the earning session is expected to be bad.”
Source: Capo/Twitter
Capo’s chart points to a roughly 22% decline in the S&P 500, which closed at 3,999 points on Friday.
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