Prominent cryptocurrency analyst Capo warns that Bitcoin, Ethereum, and altcoins may be forming a bull trap, potentially misleading traders into believing a bullish trend is established.

Capo predicts Bitcoin could rise to $100,000 and Ethereum to $3,000 before facing a significant pullback of 30% to 60%.

Recent on-chain data shows Bitcoin has decreased by 11% over the past week, with daily trading volumes falling by 53%, although Bitcoin whales have been active, purchasing over 22,000 BTC for three consecutive days.

Capo suggests that the market may experience a rapid downturn after the initial rise, potentially leading to a correction back to around $69,000 before eventually climbing to an all-time high of approximately $116,000.

Despite the expected pullback, Capo maintains a bullish outlook, projecting that Bitcoin could eventually reach approximately $116,000 after the correction.

This anticipated market downturn may be triggered by a second round of market shakeout or a black swan event, similar to the impact of the Covid-19 pandemic.

Following the potential market shakeout, Capo anticipates an 'epic' altcoin season, as historical trends indicate that altcoins rally when Bitcoin stabilizes.

A bull trap occurs when prices rise temporarily, signaling the end of a bearish trend, but then reverse sharply, leading to further losses.

Currently, Bitcoin's value has dropped to $84,000, with trading at $82,659 after a 4% decline in the last 24 hours.

As of now, Bitcoin is priced at $89,290 and Ethereum at $2,205.

Crypto Rover indicates that altcoins are currently oversold, presenting potential buying opportunities for traders, with Ethereum trading at $2,010 and experiencing an 8% decline within the last 24 hours.

Capo also foresees a significant altcoin season following this market correction.