A widely followed cryptocurrency analyst believes that Bitcoin (BTC), Ethereum (ETH) and altcoin bulls are set up for a massive trap.
The analyst and trader known in a pseudonym manner under the name of Capo tells his 938,800 subscribers on the social media platform X that the cryptography market seems ready to potentially form a bull trap.
A bull trap is a false signal which indicates that the downward trend is over, but the reverse price suddenly the course and attests to a deeper withdrawal.
According to the pseudonym analyst, Bitcoin, Ethereum and Altcoins could rally between 10% and 50% compared to current levels before a rapid price reversal.
“Bitcoin at $ 100,000 with a quick pump, Ethereum at $ 3,000, Altcoins 10% at 50% – Bull Trap soon.”
Bitcoin is traded at $ 89,290 at the time of writing while Ethereum is worth $ 2,205.
CAPO says that the bull trap would cause Bitcoin, Ethereum and Altcoins to two -digit percentage points, potentially triggered by a Black Swan event.
“30% to 60% drops (the second Shakeout event, possible Swan Black) after the Taurus trap.”
A black swan is a rare and unforeseen event that catalyzes a massive collapse of the market. The last black swan that crushed the markets was the Covid-19 pandemic.
Looking at the merchant’s painting, it seems to predict that Bitcoin will first reach $ 100,000 to face rejection and chase about $ 69,000.
But after the massive dive, he sees Bitcoin hovering at a new summit of all time of about $ 116,000.
The widely followed analyst also indicates that an altcoin “epic” season would follow the capitulation event.
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