Capo Predicts 2x Rally For Polkadot, Looks Into Bitcoin & One Smaller Altcoin
According to a popular crypto analyst and trader, known in the industry as Capo, Polkadot (DOT) looks ready to soar to new highs. He also looks into Fetch.ai (FET) and Bitcoin (BTC).
Capo shared with his 202.3 followers on the social network Twitter that interoperable blockchain Polkadot looks ripe to take off after flipping resistance at $46 into support.
Capo bases a lot of his analysis on the Elliott Wave theory, which is a form of technical analysis that looks for recurrent long-term price patterns related to persistent changes in investor sentiment and psychology. The theory identifies impulse waves that set up a pattern and corrective waves that oppose the larger trend. Each set of waves is nested within a larger set of waves that adhere to the same impulse or corrective pattern, which is described as a fractal approach to investing.
According to the analyst’s chart, Polkadot seems to be in the middle of a wave three rally, which is the longest in the theory’s five-wave uptrend.
Fetch.ai (FET)
The analyst is also looking into the price action of the native token of decentralized machine-learning platform Fetch.ai. FET looks ready to launch rally after retesting $0.84 as support, Capo says.
“FET Testing again the previous range high. Taking off soon.”
Regarding the largest crypto asset by market cap – Bitcoin, the analyst believes it has likely bottomed out and seems to be going to a bullish inverse head and shoulders pattern on the lower timeframes.
“BTC going straight to the bullish confirmation with some kind of inverse H&S [head and shoulders].”
An inverse head and shoulders is similar to the standard head and shoulders pattern, but inverted: with the head and shoulders top used to predict reversals in downtrends. This pattern is identified when the price action of a security meets the following characteristics: the price falls to a trough and then rises; the price falls below the former trough and then rises again; finally, the price falls again but not as far as the second trough. Once the final trough is made, the price heads upward, toward the resistance found near the top of the previous troughs.
According to the analyst’s chart, Bitcoin should clear resistance above $65,000 and retest it as support to confirm the bullish trend, in which case a massive rally to six figures is next, the trader says.
“Consolidation above $65250 – $65500 would be the bullish confirmation. It’s likely imo [in my opinion]. Once we get the bullish confirmation, the run to $100K+ starts.”
