A crypto strategist who correctly predicted this year’s crypto meltdown has issued a warning to traders who are bullish on Bitcoin (BTC). The analyst’s warning to Bitcoin bulls signaled a price drop. Here are the details…
Bitcoin analyst warns investors: Are the bulls falling into the trap?
Crypto Capo, a popular cryptocurrency trader, addressed his Twitter followers, specifically Bitcoin traders. The analyst noted that BTC is currently in the process of “trapping” as many bulls as possible. Therefore, he states that BTC bulls should start to act cautiously. That is, the analyst believes that the bull trap is present in the market. A bull trap indicates a trend reversal after a convincing rally. It is a false signal referring to a bearish trend in a crypto that broke a previous support level.
Capo noted profit taking in the largest cryptocurrency after Bitcoin’s recent surge above $21,000. He said that especially smart money investors will most likely profit. He thinks this will bring BTC to a price area where it will push it to 2022 lows. The analyst pointed to $21,000-21,500 as the price area in question.
He said that this area is the “distribution zone”. He stated that the distribution phases are focused on eliminating early short sales and capturing long positions. According to Capo, that means we’ve seen several times the resistance zone that strong hands use to keep building their positions.
Capo awaits “confirmation signal” in BTC
Based on the chart, the analyst noted the distribution above $21,000. He evaluated the possibilities for a sell-off event that pushed Bitcoin down to its $14,000 target. Capo suggests that this decrease of 34 percent will occur. So Capo is bearish about Bitcoin. However, along with the chart he shared, he said that in the scenario where BTC recovers and consolidates around $23,000, the bearish thesis will be invalid.
For now, Capo says he is waiting for confirmation signals before shorting Bitcoin. The analyst stated that a final move around $ 21,400-21,500 is possible in BTC. He underlined that he would not short sell at this level without confirmation of decline. On the other hand, the analyst stated that altcoins are generally on the rise. However, he states that he is cautious and does not skip “stop-loss” transactions. He states that there is a high probability of a decline in altcoins in the future.
Capo’s previous predictions
cryptocoin.com As we have previously reported, Crypto Capo has gained a large following with its predictions for cryptocurrencies. The analyst correctly predicted Bitcoin’s decline this year. Specifically, he predicted the biggest cryptocurrency to drop to around $17,000. On the other hand, last year, while Bitcoin was trading above $ 60,000, he knew that it would fall to $ 50,000. More than two years ago, he correctly predicted BTC’s drop to $3,500.
Contact us to be instantly informed about the last minute developments. twitter‘in, Facebookin and InstagramFollow and Telegram and YouTube join our channel!
Risk Disclosure: The articles and articles on Kriptokoin.com do not constitute investment advice. Bitcoin and cryptocurrencies are high-risk assets, and you should do your due diligence and do your own research before investing in these currencies. You can lose some or all of your money by investing in Bitcoin and cryptocurrencies. Remember that your transfers and transactions are at your own risk and any losses that may occur are your responsibility. Cryptokoin.com does not recommend buying or selling any cryptocurrencies or digital assets, nor is Kriptokoin.com an investment advisor. For this reason, Kriptokoin.com and the authors of the articles on the site cannot be held responsible for your investment decisions. Readers should do their own research before taking any action regarding the company, assets or services in this article.
Disclaimer: Advertisements on Kriptokoin.com are carried out through third-party advertising channels. In addition, Kriptokoin.com also includes sponsored articles and press releases on its site. For this reason, advertising links directed from Kriptokoin.com are on the site completely independent of Kriptokoin.com’s approval, and visits and pop-ups directed by advertising links are the responsibility of the user. The advertisements on Kriptokoin.com and the pages directed by the links in the sponsored articles do not bind Kriptokoin.com in any way.
Warning: Citing the news content of Kriptokoin.com and quoting by giving a link is subject to the permission of Kriptokoin.com. No content on the site can be copied, reproduced or published on any platform without permission. Legal action will be taken against those who use the code, design, text, graphics and all other content of Kriptokoin.com in violation of intellectual property law and relevant legislation.