One widely followed cryptocurrency trader believes major corrections are coming for Bitcoin (BTC) and Ethereum (ETH) after fleeting rallies.
The trader with the pseudonym “Capo” tells his 83,873 Telegram subscribers that the potential approval this week of a Bitcoin spot exchange-traded fund (ETF) is likely to spark a short-lived rally for Bitcoin and other digital assets.
“Whales are showing strong interest at the $48,000-$50,000 level. News can create volatility and leave big wicks. So a pump to that level and a big rejection after that is the most likely scenario.”
The trader shares a chart predicting Bitcoin's price movement “for the next few days.”
Looking at his chart, the trader indicates that Bitcoin will rise towards $51,000 following the news of the approval of a Bitcoin exchange-traded fund in the spot market. After the rally, he suggests that Bitcoin is likely to correct to the $30,000-$31,000 level as “whales sell the news.”
The trader also expects the Ethereum price to rise to a level of $2,600 before a correction. Other altcoins are also expected to undergo a massive correction after a short move to the upside.
“Interesting week. ETF news is due to be released soon. As shown these days, I expect the market to pump first. Bitcoin to $48,000-$50,000, Ethereum to $2,500-$2,600. Should pump Alternatives are more, especially low caps. After that, which should take a few days, the market should reach a very important local high. Then I will start opening swing short positions, aiming for new lows.
Looking further, the trader maintains his long-term prediction that Bitcoin will eventually collapse to the $12,000 level, which his chart suggests will happen around April.
“BTC HTF (High Time Frame) Idea”.
Bitcoin is trading for $46,776 at the time of writing, up 7% in the past 24 hours. Meanwhile, Ethereum is trading for $2,314 at the time of writing, up 4.7% over the past 24 hours.
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