A widely followed cryptocurrency analyst and trader is leaning bullish on the altcoin market but with a caveat.
The analyst pseudonymously known as Capo tells his 929,300 followers on the social media platform X that altcoins could go up by double-digit percentage points from the current level.
“Expecting altcoins to pump 10%-20% from here.
However, I believe this bounce is a bull trap because a big drop is likely to follow.”
A bull trap is a move designed to lure in retail traders via a fake breakout but instead of continuing to rise, the asset abruptly reverses and moves sharply to the downside.
According to the pseudonymous analyst, altcoins could bottom out and start a bull run once the potential downtrend is over. Based on Capo’s chart, it appears that Bitcoin (BTC) could simultaneously fall to a support zone between $79,000 and $86,000 before rallying to more than $112,000.
Bitcoin is trading at $97,460 at time of writing.
The widely followed analyst also offers his outlook on Solana (SOL). Based on the pseudonymous analyst’s chart posted to his 118,822 Telegram subscribers, it appears he’s suggesting that Solana could fall to the support level of around $130 to $150 before skyrocketing to a new all-time high price of over $300.
Solana is trading at $175 at time of writing.
Next up is the Ethereum (ETH)-based synthetic US dollar protocol Ethena (ENA). According to Capo, Ethena is primed to rally in a series of waves after bouncing off the main support level at around $0.40. Based on the pseudonymous analyst’s chart, it appears he’s suggesting that Ethena could rally and revisit the all-time high price of around $1.52.
Ethena is trading at $0.413 at time of writing.
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Generated Image: Midjourney
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