Analyst Who Predicted 2021 Crypto Crash Sees Bitcoin Bounce, Altcoins to Outshine

Capo, the pseudonymous crypto analyst who accurately foresaw the 2021 market collapse, now predicts a strong relief bounce for Bitcoin in the coming days. He views Bitcoin’s recent dip below $80,000 as a strategic bear trap, designed to mislead bearish investors. Capo expects altcoins to take center stage and outperform Bitcoin during this recovery. Let’s dive into the details of his predictions and what they could mean for the crypto market.

• Capo predicts a relief bounce with altcoins outperforming Bitcoin
• Bitcoin must reclaim $84,000 and Ethereum $2,000 for bullish continuation
• TOTAL2 chart indicates a bullish trend for altcoins

Capo’s latest take on the market hinges on the concept of a bear trap, a deceptive move that tricks bearish investors into selling off their assets, only for the market to rebound. He labels Bitcoin’s dip below $80,000 as such a trap, asserting that the local bottom, which hit $76,000 in 2025, signals an imminent recovery. For those new to the term, a bear trap is a false signal that encourages selling during what appears to be a downturn, but the market soon reverses and climbs higher.

“Bear trap went lower than expected, but the local bottom should be in or very close. A strong relief bounce is likely over the next few days, with altcoins expected to outperform Bitcoin,” Capo stated on his social media channels.

To sustain this bullish momentum, Capo believes Bitcoin needs to reclaim the $84,000 mark, while Ethereum must reach $2,000. These levels are pivotal for continuing the upward trend. Capo also monitors the TOTAL2 chart, which tracks the market cap of all cryptocurrencies excluding Bitcoin and stablecoins. This chart recently retested a key support level at $971 billion, indicating that altcoins are poised for a bullish trend as they hit major support points after a significant correction.

Despite the current bearish sentiment and negative funding rates, which are payments made between long and short traders to maintain their positions, Capo sees potential upside liquidity. He notes, “Fundings are very negative, confirming the bearish sentiment. There’s a lot of liquidity to the upside.”

At the time of Capo’s analysis, Bitcoin was trading at $82,765, Ethereum at $1,926, and TOTAL2 at $1 trillion. His predictions, given his track record, add an intriguing layer to the volatile crypto market. But not everyone is jumping on the hype train. Analyst Ryan Lee from Bitget Research suggests a possible correction to $95,000, indicating a broader range of possible outcomes. This skepticism serves as a necessary counterpoint to Capo’s bullish outlook, reminding us that the crypto market remains a wild west of unpredictability.

While we’re all about pushing the boundaries of decentralization, freedom, and effective accelerationism, it’s crucial to approach these predictions with a healthy dose of skepticism. The crypto space is a rollercoaster of both promise and pitfalls. Capo’s insights are valuable, but they should be one piece of a broader, balanced investment strategy.

Bitcoin’s journey, alongside the myriad of altcoins, continues to disrupt the financial status quo. As we ride this wave of innovation, let’s not forget the lessons of past market cycles: always be prepared for the unexpected.

Key Takeaways and Questions

• What is a bear trap in cryptocurrency markets?
  A bear trap is a false signal indicating that the market is heading downward, designed to lure bearish investors into selling, only for the market to reverse and rise.
• What does Capo predict for Bitcoin’s near-term future?
  Capo predicts a strong relief bounce for Bitcoin in the coming days, with a local bottom around $76,000.
• How does Capo expect altcoins to perform relative to Bitcoin?
  Capo expects altcoins to outperform Bitcoin during the anticipated relief bounce.
• What price levels does Capo consider crucial for Bitcoin and Ethereum to continue bullish trends?
  Bitcoin needs to reclaim $84,000, and Ethereum needs to reach $2,000 for bullish continuation.
• What is the TOTAL2 chart, and why is it important?
  The TOTAL2 chart tracks the market cap of all crypto assets excluding Bitcoin and stablecoins. It is important as it indicates the performance of altcoins, which Capo is monitoring for signs of a bullish trend.
• What current market conditions does Capo highlight?
  Capo highlights negative funding rates and a bearish sentiment but notes potential upside liquidity.
• Why should investors pay attention to Capo’s predictions?
  Investors should pay attention because Capo accurately predicted the 2021 crypto market collapse, suggesting his insights are valuable.