The pseudonymous analyst Capo tells his 503,000 Twitter followers that Bitcoin looks primed for a breakout rally now that the king crypto has taken out a diagonal resistance on the lower timeframe.
“Main bearish trendline 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: break $19,500 and main confirmation would be a clean break of $19,000.”
At time of writing, Bitcoin is changing hands for $19,815, flat on the day.
Next up is Ethereum, which Capo says is currently presenting a good opportunity for short-term traders.
“Longed ETH, good [risk/reward] ratio. Target price: $1,800.”
Looking at Capo’s chart, he expects Ethereum to sharply correct to around $1,300 after hitting his target. At time of writing, ETH is valued at $1,558, also flat on the day.
The crypto strategist is also keeping an eye on fellow smart contract protocol Cardano. According to Capo, ADA has broken out of its diagonal resistance and now appears to be en route to his target at $0.52.
“Playing out nicely. Stop loss moved to breakeven.”
Although Capo is near-term bullish on Cardano, his chart shows that he expects ADA to witness a deep retracement to around $0.30 after his target price is met.
At time of writing, Cardano is trading for $0.47, up over 4% on the day.
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