Benzinga - by Murtuza Merchant, Benzinga Staff Writer.
Crypto trader Capo, well-known for his bearish predictions throughout the 2023 market rally, doubled down by dismissing a sustained market rally in case a spot Bitcoin (CRYPTO: BTC) exchange traded-fund (ETF) gets regulatory approval.
What Happened: Capo outlined a scenario where an initial pump on ETF news will be followed by a "few days later" reversal and "massive corrections" for both Bitcoin and Ethereum.
The initial news about the first-ever spot Bitcoin ETF approval will lead to a short-lived surge in the market, Capo says, predicting that Bitcoin could potentially reaching the $48,000-$50,000 range, while Ethereum (CRYPTO: ETH) could climb to $2,500-$2,600.
This optimistic outlook, however, comes with a stark warning: "That's when I will start opening swing short positions, aiming for new lows."
Capo's bearish take is based on:
- Strong whale interest around the $48,000-$50,000 level for Bitcoin, suggesting a potential point of resistance where momentum could stall.
- News-driven volatility leading to "large wicks" on price charts, highlighting the possibility of temporary spikes followed by sharp drops.
Why It Matters: The pending approval of spot Bitcoin ETFs has generated excitement within the crypto community. Many hope it will bring increased mainstream adoption and a boost to asset prices.
However, Capo's perspective resonates with a more cautious group of analysts, who view ETFs as potential catalysts for short-term price manipulation and eventual market corrections.
Now Read: 4 Critical Bitcoin ETF Factors To Watch Ahead Of SEC's Imminent Decision
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