Bitcoin Plunges to Three-Month Low, Capo Predicts $100K Rally

Crypto markets witnessed a significant liquidation event on Monday, with over $1.58 billion in levered long positions being liquidated within a 24-hour period. This event was accompanied by a sharp decline in Bitcoin's price, which reached a three-month low of $86,141.

Despite the recent correction, a widely followed crypto strategist, Capo, believes that a strong bounce is likely for the crypto market. According to Capo, the rally will be triggered by a short squeeze, which occurs when a sharp rise in the price of an asset forces traders who had previously sold short to close their positions.

Capo predicts that Bitcoin could rally to $100,000 before capitulating to as low as $80,000, setting the stage for a push to a new all-time high. Similarly, Ethereum is expected to follow a similar path, with Capo predicting a new all-time high of $5,000 after a brief decline below $2,000.

Capo also has a bullish outlook for Solana, predicting that it would first rally to $185 and plunge to $120 before a subsequent reversal to $310.

While Capo's predictions are based on his analysis of the market, it is important to note that the crypto market is highly volatile and unpredictable. Investors should exercise caution and conduct their own due diligence before making any high-risk investments in Bitcoin, cryptocurrency, or digital assets.