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.
— 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.
— 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.
— 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.