Cryptocurrency Il Capo Of Crypto, one of the most well-known short-leaning analysts in the market, bitcoin and in altcoins He came out of the silence he had after the last rally.
il Capo argued that his views did not change in his previous message when the Bitcoin price rose above $ 18,000.
Today, with the BTC price rising above $21,000, the analyst issued a new statement:
“The market is jumping more than expected, that’s for sure. So… has the bearish scenario expired?
I will explain why I think new lows are still possible.
1) Long time interval.
BTC is still testing major resistance. The weekly close will be important, but no bullish confirmation yet. The same is true for Ethereum, the total market cap, and other coins.
On the other hand, altcoins experience random pumps, many of which are reaching resistance levels. We’ve seen this during every bounce in this bear market. It gives the false illusion of being at the bottom.
The downtrend in traditional markets continues. SPX continues to form lower highs all the time and revenue sessions are expected to be bad.
The invalidity of the bear trend will become clear when new highs are formed on long timeframes and key levels are recovered. This has not happened yet.
2) Short time interval.
BTC is in a parabolic move in a short timeframe. But there is a problem for the bulls. This move is already overstretched. The base of the parabola was weak and this short timeframe often causes sharp dips and reversals when the trend is broken.
The last pump from 19k to 21k showed a lot of weakness and trapped the bulls. The number of open positions decreased and funding increased more than ever since the 16,000 local low.
This supports the theory that the parabolic short timeframe movement has peaked.
3) Sensitivity
Taurus are not only enthusiastic, they are also very arrogant. His constant need to celebrate a victory by mocking others indicates a weakness in his arguments.
Because the best bullish argument is “the market has already fallen too low”.
Note that I’ve been out of the market completely since January/February 2022 with an average asking price of $41.5k and most of my portfolio is altcoins. These altcoins are still 70-90% below my selling point, so I would be more than happy to buy them in case the bear trend is invalidated.”
4) Key points
-Long time range macro resistance
-Weak-based hyperextended parabola
-Bull trend which is extreme for these prices
5) Conclusion
Despite the recent leap, the bearish scenario has not lost its validity. If you’ve made profits these days, my sincere congratulations, but remember that this is not a bad time to protect those profits.
As I’ve said several times, the bear market shows the true face of people. And in the end, the market (and life) makes everyone humble.
12 thousand is still a possible number.
*Not investment advice.