A preferred dealer recognized for staying steadily bearish all through 2022 says the newest rallies imply nothing and one other leg down is imminent.
Pseudonymous dealer Capo tells his 703,000 Twitter followers that his bearish outlook hasn’t been invalidated by the market’s large bounce, which has seen Bitcoin (BTC) rally 21%, Ethereum (ETH) 23% and plenty of altcoins explode 30% or extra up to now seven days.
In accordance with Capo, BTC remains to be unsuccessful in breaking its most crucial resistance across the $21,000 to $22,000 space.
“Market is bouncing greater than anticipated. That may be a certainty. Now… is the bearish state of affairs invalidated?
I’m going to elucidate why I feel new lows are nonetheless doubtless…
BTC remains to be testing main resistance. Weekly shut will likely be key, however there’s no bullish affirmation but.”
Capo says that comparable resistance is current within the charts of Ethereum, the whole crypto market cap (TOTAL) and the whole altcoin market cap (OTHERS). He doubles down on bearish worth targets for all devices, together with $600 for ETH.
“That is additionally clear on ETH, TOTAL and OTHERS.”
The buying and selling veteran additionally sees weak point within the inventory market, which has largely held a directional correlation with cryptocurrencies over the previous a number of years. He says that the S&P 500 is forming repetitive decrease highs and predicts that this quarter’s incomes season doesn’t prove so nicely for many large corporations listed within the index.
“Conventional markets downtrend is unbroken too. SPX retains forming decrease highs on a regular basis and incomes session is predicted to be unhealthy.”
Capo’s chart suggests a couple of 22% drop within the S&P 500, which closed on Friday at 3,999 factors.
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