An analyst who accurately predicted the end of the 2021 crypto cycle suggests that Bitcoin’s drop below $80,000 is a tactic to deceive BTC bears into believing that the bull market has ended.
Pseudonymous analyst Capo informs his 942,200 followers on the social media platform X that he believes Bitcoin is currently forming a mid-cycle bottom after a significant correction from its all-time high of approximately $110,000.
Capo describes BTC’s decline to a 2025 low of $76,000 as a bear trap, indicating a false breakdown that could lead to a strong bullish reversal, with altcoins taking the lead.
“The bear trap went lower than expected, but the local bottom should be in or very close. A strong relief bounce is likely in the next few days, with altcoins expected to outperform Bitcoin.”
On Telegram, Capo mentions that he is starting to observe signs of strength for both Bitcoin and altcoins in the lower time frames.
“Ideally, BTC needs to reclaim $84,000 and ETH $2,000 for bullish continuation… Most altcoins are hitting major support levels after a significant correction. Many people are panic selling at these levels, while others are waiting for lower prices. Fundings are very negative, confirming the bearish sentiment. There’s a lot of liquidity to the upside.”
Currently, Bitcoin is trading at $82,765, and Ethereum (ETH) is priced at $1,926.
To support his positive outlook on altcoins, Capo mentions that he is closely monitoring the TOTAL2 chart, an alt index that excludes Bitcoin and stablecoins in tracking the market cap of all other crypto assets.
He shares a chart indicating that TOTAL2 has successfully retested a critical support level at $971 billion.
A positive TOTAL2 chart indicates a rally in the altcoin market, with TOTAL2 currently valued at $1 trillion after hitting a low of $974 billion in 2025.
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Generated Image: Midjourney