Bitcoin (BTC) may be setting up for a dramatic rally to $90,488 before a sharp reversal, according to an analysis by pseudonymous trader Capo of Crypto. The analyst shared a chart on X outlining a four-stage move where Bitcoin first holds near $81,000 to $82,000, then surges to the $90,488 level, which he warns could be an "ultimate trap" for buyers expecting a sustained breakout. Following this peak, Capo predicts a drop to $75,000, a brief rebound back to $81,000 to $82,000, and then a deeper decline to $65,000 to $68,000, a zone he believes represents fair value for Bitcoin.
Meanwhile, Ethereum (ETH) could play a crucial role in the next market downturn, according to analyst SalsaTekila. In a post on X, SalsaTekila noted that Ethereum has bounced off the $2,350 to $2,370 range three times, leaving stop-loss orders vulnerable to a potential sweep. He also highlighted liquidation risks tied to large Hyperliquid traders positioned below $2,300, warning that forced closures of these bullish positions could trigger broader selling pressure beyond Ethereum.
Widely-followed crypto trader Michaël van de Poppe offered a more optimistic view, suggesting that the recent pullback in Bitcoin appears sharper than it actually is. He argued that during periods when altcoins rally, large breakout gaps tend to form and eventually get retested, creating attractive entry points rather than signaling a deeper breakdown.
The broader market pullback was driven by three key catalysts: the U.S. government moving $1 billion in seized Bitcoin to new wallets, the White House considering pre-midterm strikes on Iran, and Fed minutes hinting at another rate hike before year-end. President Donald Trump later denied plans to strike Iran before the midterms, but Bitcoin failed to recover at the time. Separately, Trump’s EPA proposed rolling back Biden-era methane rules, a move that could ease pressure on energy prices tied to the broader macroeconomic factors affecting crypto.