The crypto analyst who correctly called the collapse of Bitcoin (BTC) this year is now issuing a warning to investors about an impending altcoin implosion.
Pseudonymous trader Capo tells his 694,900 Twitter followers that while the financial markets may look bad, the conditions look even worse for altcoins.
“The entire market looks bad…
Thing is that some altcoins look even worse. If altcoins should dump 50%-55% on average from here, pure shitcoins could easily dump 60%-90%. Stay safe.”
Capo recently predicted new bear market lows for both the king crypto and Ethereum (ETH), the largest altcoin by market cap. According to the strategist, BTC can dip as low as $12,000 while the leading smart contract platform could nosedive to $600-$650.
Trend is still bearish.
Indicators are pointing to full capitulation event.
Bad news should come soon. BTC $12,000 ETH $600-$650.”
At time of writing, Ethereum is changing hands at $1,200.
Previously, Capo also said that while Bitcoin bulls may have ignited a rally from the current bear market low of around $15,700, the bounce is significantly smaller than those seen during Bitcoin’s upward rallies in June.
“Every bounce is smaller. Lower lows and lower highs. Support becoming resistance. $12,000 is like a magnet.”
The trader noted at the time that most Bitcoin holders are underwater and ill-prepared for the future.
“Just read the comments here and you will get a second confirmation (first one is the analysis and indicators) that most people are trapped above $17,000 or higher and couldn’t take another drop. Like I said before, most people are not prepared for what is coming and it shows.”
Bitcoin is valued at $16,625 at time of writing, a fractional gain on the day.