A crypto strategist who spotted this year’s meltdown in the digital asset markets says rallies are in sight for Bitcoin (BTC), Ethereum (ETH) and Cardano (ADA).
The pseudonymous analyst Capo says his 503,000 Twitter followers that Bitcoin looks poised for a breakout rally now that the king crypt has taken out a diagonal resistance on the lower time frame.
“Main bearish trend line broken. Bullish confirmation for the short squeeze would be a break of the $20,700-$20,800 resistance. After this, we should see $22,500-$23,000. Invalidation for the short squeeze idea: $19,500 break and the main confirmation would be a clean $1[ads1]9,000 break.”
At the time of writing, Bitcoin is changing hands for $19,815, fixed on the day.
Next up is Ethereum, which Capo says presents a good opportunity for short-term traders.
“Extended ETH, good [risk/reward] relationship. Target price: $1,800.”
Looking at Capo’s chart, he expects Ethereum to correct sharply to around $1,300 after hitting the target. At the time of writing, ETH is valued at $1,558, also flat on the day.
The crypto strategist is also keeping an eye on other smart contract protocols Cardano. According to Capo, ADA has broken out of its diagonal resistance and now appears to be on its way to his target of $0.52.
“Playing well. Stop loss moved to breakeven.”
Although Capo is bullish on Cardano in the short term, his chart shows that he expects ADA to witness a deep retracement to around $0.30 after the target price is reached.
At the time of writing, Cardano is trading at $0.47, up over 4% on the day.
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