Altcoin Market Outlook by Analyst Capo

A widely followed cryptocurrency analyst and trader, known as Capo, is bullish on the altcoin market but warns of potential pitfalls.

Capo informs his 929,300 followers on X that altcoins could increase by double-digit percentage points:

> “Expecting altcoins to pump 10%-20% from here. However, I believe this bounce is a bull trap because a big drop is likely to follow.”

A bull trap refers to a situation where retail traders are baited into a fake breakout, leading them to believe that prices will rise, only for the asset to reverse and fall sharply.

Capo speculates that altcoins might bottom out and begin a real bull run after the potential downtrend has concluded. His chart indicates that Bitcoin (BTC) may decline to a support zone between $79,000 and $86,000 before making a rally towards $112,000. Bitcoin is currently trading at $97,460.

Capo also shares insights on Solana (SOL), suggesting it could drop to a support level between $130 and $150 before shooting up to a new all-time high of over $300. Solana is currently trading at $175.

For Ethereum (ETH)-based synthetic US dollar protocol Ethena (ENA), Capo believes it is positioned to rally in consecutive waves after bouncing off a main support level around $0.40. He anticipates Ethena could climb back to its all-time high of approximately $1.52. Ethena is currently trading at $0.413.

Source: Capo/X