The cryptocurrency market is full of polarizing views and controversial figures. Among the most notorious is a crypto trader who knows about Bitcoin crashes and is extremely outspoken about the bear trend. The analyst, nicknamed Crypto Capo, shared his views and shed light on the thought process while analyzing the market.
Bear stance: Waiting for Bitcoin and crypto market to drop
Crypto Capo remains committed to the bearish outlook, keeping 70% of its portfolio out of the crypto market. He shorts certain leveraged altcoins with the remaining 30% of his portfolio. The famous crypto trader says that the market will continue to stagnate and he expects important news to trigger the move. For the analyst’s accurate predictions cryptocoin.comCheck out this article.
According to Crypto Capo, several altcoins are breaking key support levels. Likewise, “0-B/0-X trendlines” are on the verge of doing so. Other altcoins have already reached new lows. It also confirmed that the upward move from the December low was just a correction. The crypto trader expects a big sell-off in the near future. He believes altcoins could potentially drop 60-80% and Bitcoin’s primary target is $12,000.
Key factors affecting bearish outlook
Binance Effect: Binance, one of the largest cryptocurrency exchanges, holds 70-80% of the BNB supply. With recent legal challenges, it is possible that the company will sell BNB, similar to the situation with FTT.
Price Manipulation: The crypto trader argues that the manipulative BUSD is driving the strong bull run in purchases in early 2021. Sam Bankman-Fried has taken similar actions with FTT, albeit publicly. Binance CEO Changpeng Zhao went public with a $1 billion BUSD fund, and BUSD can no longer be printed due to regulatory restrictions.
Technical Analysis: Signs of an impending decline
Whale Distribution in the Dark Zone: Crypto Capo says the chart below shows a clear scatter above the dark region. This potentially indicates that large investors like Binance are draining their holdings. A break below the $210 support level, which has been tested many times, could confirm this.
Corrective Pattern From 2022 Low: The crypto trader points out a corrective pattern consisting of 2022 lows. Such a bearish flag is likely to signal a downtrend.
Stunning Similarity to FTT Chart: The BNB chart is similar to the FTT chart. Crypto Capo states that the only difference is that BNB’s timeline is longer.
The distribution range has been going on for over two years. Given this situation, it’s possible that the ensuing range expansion could potentially bring prices down significantly.
Deciphering the strategy of the Bitcoin oracle
Meanwhile, the controversial crypto trader’s bearish perspective is likely not to please everyone. But understanding his views is important as it provides valuable context for market analysis. It is possible for traders to gain a more comprehensive understanding of the current state of the crypto market by exploring the fundamental and technical factors that have shaped its strategy. Thus, they have the opportunity to make informed decisions accordingly.
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