Capo Predicts Rallies For Altcoins Based On Elliott Wave Theory
A pseudonymous crypto trader and analyst, known as Capo predicts altcoin rallies based on Elliott Wave theory.
Capo shared with his 170K followers on Twitter that according to Elliott Wave theory, several altcoins have gone through the first two waves and are about to begin the third wave which is known as the “big pump.”
“Many altcoins are starting the macro w3 (third Elliott Wave of an impulse, which is usually the stronger)
Also, some of them have already done the w1 [Wave one] and w2 [Wave two] of that w3 [Wave 3], so the big pump is coming.”
4) Many altcoins are starting the macro w3 (third Elliott Wave of an impulse, which is usually the stronger)
Also, some of them have already done the w1 and w2 of that w3, so the big pump is coming.
Capo relies 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.
The first wave is a run up, followed by a correctional second wave that does not rise above Wave 1’s highest point. Wave 3 is typically the biggest and most powerful and rises above the highest point that Wave 1 reached.
According to the trader this bullish thesis is supported by the fact that bearish sentiment is weak across the crypto sector.
The analyst uses Bitcoin (BTC) chart as an example, support has held strong for BTC, and bears have failed to drag it down below a key level many times.
“Mid-term bearish structure is already broken. This happened in all coins. They are also bouncing from a strong support.”
He also uses heatmaps from the Bitfinex and Binance crypto exchanges show strong demand at key Bitcoin support levels.
“Heatmaps are showing strong demand here, especially Bitfinex and Binance.”
