A prominent cryptocurrency analyst has raised concerns about a potential trap awaiting Bitcoin (BTC), Ethereum (ETH), and other altcoin bulls.
Known as Capo, the analyst shared with his nearly one million followers on X that the crypto market appears poised for a rise that could lead to a bull trap.
A bull trap is a deceptive signal suggesting the end of a bearish trend, only to be followed by a sudden reversal and deeper decline in prices.
Capo predicts that Bitcoin, Ethereum, and altcoins could see a surge of 10% to 50% before a swift turnaround.
“Bitcoin heading to $100,000, Ethereum to $3,000, and altcoins experiencing a 10% to 50% increase – a bull trap is imminent.”
At the time of writing, Bitcoin is trading at $89,290 and Ethereum at $2,205.
The analyst warns that this bull trap could lead to a significant correction, with Bitcoin, Ethereum, and altcoins dropping by double-digit percentages, possibly triggered by an unexpected event.
“Expect a 30% to 60% decline (the second shakeout, potentially a black swan event) after the bull trap.”
A black swan event refers to a rare and unforeseen occurrence that triggers a severe market downturn. The most recent example was the Covid-19 pandemic.
Capo’s chart suggests that Bitcoin may initially reach $100,000 before facing resistance and dropping to around $69,000. However, he anticipates a subsequent rally to a new all-time high of approximately $116,000.
The analyst also foresees an “epic” altcoin season following the capitulation event.
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