The current rally in the alt markets could be a bull trap, crypto expert warns
- Widely-followed crypto analyst Crypto Capo has suggested that altcoin markets could collapse
- According to the crypto expert, Cardano (ADA) is obviously bearish
Popular crypto strategist Crypto Capo has stated that he is not yet bullish on most altcoins, indicating that 99% of them are showing signs of a slump set to come soon.
Addressing his Twitter following yesterday, the crypto trader spoke in retrospect to the recent upsurge in crypto markets crossing into the new month. Market leader Bitcoin cruised upwards of $43k, and as expected, several altcoins tagged along in growth.
However, the pseudonymous crypto investor said that while altcoins undergo imminent market growth, the joy could be short-lived since they could well be leading investors into a bull trap.
“Some people may think I’m biased to the downside. Later I will post a lot of examples of altcoins that are doing corrective moves to the upside after breaking key supports,” he said.
ADA is the clearest but SOL, WAVE and COTI too are in the mix
In particular, Capo singled out Cardano (ADA), Solana (SOL), Waves (WAVES), and Coti (COTI) as some of the tokens showing why he has a bearish mood on altcoins. The crypto expert explained that ADA, for instance, is demonstrating clear tells of rejection. ADA/USD trading chart. Source: Crypto Capo
“One of the clearest: ADA.”
Further, Crypto Capo showed that SOL failed to reclaim resistance around $120 and is currently nearing the conclusion of a market rebound. SOL/USD trading chart. Source:Crypto Capo
For COTI, the ticker of decentralised payments platform Coti, Capo noted that it is encountering severe resistance around $0.24. Also, the crypto expert feels that the resurgence of both Waves (WAVE) and Hathor (HTR) would likely come to an end shortly as well.
Capo asserted that most altcoin markets are set for a downturn that could come soon. He insisted that the listed coins were just a reflection of the general bearish mood looming across nearly all altcoin markets.
“These are just some examples, but 99% of the altcoins look like this. It’s impossible for me to be bullish here, after the break of all the bullish market structure + correctives moves to the upside. You can enjoy the low timeframe pumps while they last, but don’t get too comfy. Time will tell.”