A widely followed analyst with a successful track record of predicting market pullbacks is updating his outlook on several top crypto assets.
The pseudonymous trader known as Capo tells his 487,100 Twitter followers that in light of the recent rally in the S&P 500 futures market, Bitcoin (BTC) is also likely to recapture the $23,000 level before subsequently breaking down.
“SPX futures bouncing from support as expected. Resistance between 4,220 and 4,280, to form a lower high. Just a matter of time until BTC follows to $23,000-$23,500, also to form a lower high (w2 of w5).
Then we should see rejection from there and downtrend continuation.”
When it comes to how low Bitcoin will go, Capo says the king crypto could dip to as low as $16,000.
“Main resistances: $22,500 and $23,500. Every short squeeze to these levels is a good sell opportunity.
Main support: $19,000. This is the ultimate bearish confirmation for new lows.
Main target: same as always, $16,000. Very likely for the coming weeks.”
The analyst’s overall bearish outlook for Bitcoin dates back to March 12th, when the leading crypto asset was trading around the $39,000 level. He said at the time,
“Clean break of $38,000 = $35,000. Break of $35,000 = $30,000.
Below $30,000 it should reach the main target of $21,000-$23,000.”
Bitcoin is currently trading sideways and priced at $21,677.
Moving on to scalable blockchain platform Cardano (ADA), the analyst thinks it’s possible the altcoin could rally from a recent low of $0.44 to between $0.48 and $0.52.
“ADA long idea, good [risk/reward]. Not financial advice.”
At time of writing, Cardano is up 1.73% and priced at $0.47
The chart specialist concludes his crypto analysis by exploring what’s next for layer-1 protocol Solana (SOL).
While answering a question about the altcoin’s ability to flip support and resistance, Capo says SOL is likely to reach a lower high after attempting to recover from a mid-August price drop, before ultimately continuing down below the $30 level.
“First up to form a lower high, then down.”
Solana is trading even over the past 24 hours and valued at $35.95.
SOL had reached nearly $48 back on August 14th before grinding down to below $35 on the 20th.
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Featured Image: Shutterstock/Everyonephoto Studio/Nikelser Kate
