Crypto Bear Predicts Massive BTC and ETH Drops & Altcoin Capitulation

A crypto trader who a lot of people pay attention to is telling market participants that he thinks digital assets are about to drop by a lot.

In a long message, trader and crypto bear Capo tells his 766,600 Twitter followers that he thinks Bitcoin (BTC) will drop to around $12,000 and Ethereum (ETH) will drop to between $500 and $700, but he doesn’t say when.

Even though crypto assets have gone up this year, the analyst is still not optimistic about them. He also says that he expects altcoins to capitulate and lose more than half of their value.

“The analysis hasn’t changed. Price is still at major resistance and as said before, the movement looks manipulated. A capitulation event is still likely and the main targets remain $12,000 for BTC and $500-$700 for ETH.

Altcoins would drop 60-80% on average.”

Capo says that a lot of altcoins are weakening or have already retraced their gains from this year’s rise and are about to hit new lows.

The trader says he is building short positions on a few crypto assets, such as Binance Coin (BNB), Solana (SOL), and Polygon (MATIC), which the U.S. Securities and Exchange Commission (SEC) recently said were securities.

“Many altcoins have already made a new low below that of 2022 and some are even reaching Covid lows. Others have retraced much of this year’s bear market rally and are about to make new lows.

That’s why I have been building short positions for the mid-term (with low leverage) in which I’m adding size at key resistances and in the altcoins that I think may drop more (BNB, TRX, SOL, AAVE and MATIC). All these positions are in profit except the TRX one.”