The crypto strategist who nailed this yr’s crypto meltdown is issuing a urgent warning to Bitcoin (BTC) bulls.
Pseudonymous crypto dealer Capo tells his 579,600 Twitter followers that Bitcoin merchants ought to begin exercising warning as he says BTC is now within the means of trapping as many bulls as attainable.
Capo says that after Bitcoin’s newest surge above $21,000, the king crypto has now reached a worth space the place sensible cash buyers will doubtless take income and push BTC to new 2022 lows.
“As I’ve stated many instances, $21,000-$21,500 is hammer zone (distribution zone). Distribution phases are made to entice as many longs as attainable whereas destroying early shorts. This implies a number of pushes into the resistance zone, that sturdy palms use to maintain constructing their place.”
Based mostly on the chart, the analyst seems to foretell that the distribution above $21,000 would set off a sell-off occasion that pushes Bitcoin all the way in which right down to his goal at $14,000, suggesting an over 34% draw back for the highest crypto by market cap.
Though Capo has a bearish view on Bitcoin, the chart additionally exhibits that his thesis could be invalidated if BTC manages to rally and consolidate round $23,000.
For now, Capo says he’s ready for affirmation alerts earlier than shorting Bitcoin.
“I’m not bullish on BTC anymore, however I’m not shorting neither till I see bearish indicators (till the distribution is full). A final push to $21,400-$21,500 is feasible and also you don’t wish to brief right here and not using a bearish affirmation.”
At time of writing, Bitcoin is altering palms for $21,377, up over 5% within the final 24 hours.
Capo subsequent takes up altcoins, saying he stays bullish on crypto property apart from Bitcoin for the second.
“I’m nonetheless bullish on altcoins however being cautious (trailing the SL [stop loss] in income). I’ll flip full bearish quickly.”
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Featured Picture: Shutterstock/Tithi Luadthong
