A popular analyst announced that he was selling his Ethereum to buy Cardano.

The analyst, nicknamed Capo, told his 136.00 followers that Bitcoin is showing signs of strengthening after trying to stay above the important $ 30,000 support.

“BTC. Well done so far. Remember that the longer the scope time, the greater the outbreak. “

BTC / USDT 4-hour chart | Source: Capo / Twitter

According to Capo’s chart, Bitcoin follows a Wyckoff accumulation pattern, an accumulation phase in a market cycle where the price action shows that bigger players are building positions before the price explodes. He also stressed that Bitcoin’s uptrend will be confirmed if the price breaks above the $ 42,000 resistance and turns it into support.

The strategist remains bullish throughout the decline and expects Bitcoin and the crypto market to hit new highs this year. Capo previously mentioned that he is researching the Bitcoin Dominance Rate (BTCD) to find the similarities between the crypto market cycles.

“When the bitcoin dominance chart hits the bottom it usually corresponds to the top of the cycle. I still don’t see any signs of bottoming out in this index. “

BTCD daily chart | Source: Capo / Twitter

Capo’s chart shows the BTCD will decline to around 22.30% before bottoming out. At the time of writing, Bitcoin is dominant over 47%.

The trader also looked at PlanB’s stock-to-flow (S2F) model, which divides Bitcoin’s current supply by its annual production. Capo predicts that Bitcoin will bounce back and eventually beat S2F’s 365-day average on its way to $ 100,000 before hitting its high above $ 200,000.

Source: Capo / Twitter

As for the broader digital asset market, the analyst believes there will be another parabolic rally after the correction ends.

“Altcoin Market Capitalization (AltcoinCap). One last round of growth is missing. There is no divergence between wave 3 and wave 5 ″.

AltcoinCap Monthly Chart | Source: Capo / Twitter

AltcoinCap Monthly Chart | Source: Capo / Twitter

Looking at Cardano (ADA), Capo said this was a good profit and he sold all of his remaining ETH to switch to ADA.

“Sell the rest of the ETH to buy ADA. That’s the horse of this market cycle. “

Weekly ADA / USDT Chart | Source: Capo / Twitter

Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

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