Top Analyst Says, Crypto Rally Will Lead To Massive Correction

According to a well-known cryptocurrency expert who correctly predicted Bitcoin’s (BTC) 2022 crash, the present market rise is probably a bull trap.

Even when Bitcoin surpasses $17,000, the industry-recognized analyst going by the alias Capo tweets to his 698,800 followers that he expects a market drop.

The value of several alternative coins has recently increased. However, Capo cautions that Bitcoin is likely preparing for another leg down, maybe to roughly $12,000, a fall of more than 30% from its $17,324 price at the time of writing. Bitcoin is now rebounding directly into a resistance level just below $20,000.

“Zoom out. Ask yourself: why am I buying here? Is it because of FOMO(fear of missing out)? You are seeing random altcoins having random pumps, same as have been happening since the start of the downtrend, and you feel the need to buy. You could think this might be the bottom. However, there’s not a single bullish confirmation yet.

Just look. It’s there, right before your eyes. Bearish trend is intact. Bitcoin and most of the market are testing broken supports as resistances. We have seen this over and over. I’m not buying.”

In addition, Capo predicts a steep decline for the S&P 500 (SPX), which has maintained a strong relationship with the cryptocurrency markets. In February, he believes the SPX would fall as low as $3,180 before rising. The SPX is now trading at 3,940 points.

Although Kaleo, a fellow cryptocurrency expert, is bullish, Capo believes the market rise is only getting started.

According to Kaleo, the leading smart contract platform Ethereum (ETH) is on its way to another leg up to $1,400. Ethereum is currently trading at $1,343, up more than 12% from its low of $1,192 at the beginning of the year.