A closely followed trader who called the 2022 crypto collapse is warning of a bull trap after the latest consumer price index (CPI) data came in better than expected.
The pseudonymous crypto trader known as Capo tells his 685,200 Twitter followers that while Bitcoin (BTC) is rallying on the CPI data, the king crypto is meeting significant resistance around $17,800.
Despite beating expectations, Capo says the CPI numbers are still relatively high, and that Bitcoin likely won’t be able to break the $18,000 price level.
November’s CPI came in at a 7.1% increase in prices over last year and a 0.1% increase over the prior month, versus an expected 7.3% increase over the year and a 0.3% from the prior month.
“CPI better than expected, but still very high. Price is testing a massive resistance zone here and forming a lower high. I’m still 100% out of the market.”
Capo says Bitcoin is likely to drop down to $12,000 heading into 2023. At time of writing, Bitcoin is changing hands at $17,729.
Capo also sets lower price targets for Ethereum (ETH) and altcoins.
“Trend is still bearish. Indicators are pointing to full capitulation event. Bad news should come soon. ETH $600-$650. Altcoins 50%-70% potential drop (s**tcoins even more). Stay safe, things could get very ugly.”
At time of writing, Ethereum is changing hands at $1,315.
Capo also weighs in on Binance Coin (BNB), the native token of Binance, the world’s largest digital asset exchange, which has declined in value in recent days. Capo says BNB could drop by more than 85%, setting a price target range between $40-$45.
At time of writing, BNB is changing hands at $273, down more than 6% from its weekly high of $291.
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