The crypto strategist who nailed this year’s crypto meltdown is issuing a pressing warning to Bitcoin (BTC) bulls.
Pseudonymous crypto trader Capo tells his 579,600 Twitter followers that Bitcoin traders should start exercising caution as he says BTC is now in the process of trapping as many bulls as possible.
Capo says that after Bitcoin’s latest surge above $21,000, the king crypto has now reached a price area where smart money investors will likely take profits and push BTC to new 2022 lows.
"Wéi ech scho vill Mol gesot hunn, $ 21,000 - $ 21,500 ass Hammerzone (Verdeelungszone). Verdeelungsphase gi gemaach fir sou vill wéi méiglech Longs ze falen wärend fréi Shorts zerstéiert ginn. Dëst bedeit e puer Drécken an d'Resistenzzone, déi staark Hänn benotze fir weider hir Positioun opzebauen.
Based on the chart, the analyst appears to predict that the distribution above $21,000 would trigger a sell-off event that pushes Bitcoin all the way down to his target at $14,000, suggesting an over 34% downside for the top crypto by market cap.
Although Capo has a bearish view on Bitcoin, the chart also shows that his thesis would be invalidated if BTC manages to rally and consolidate around $23,000.
For now, Capo says he is waiting for confirmation signals before shorting Bitcoin.
"Ech sinn net méi bullish op BTC, awer ech kuerzen och net bis ech bearish Schëlder gesinn (bis d'Verdeelung fäerdeg ass). E leschte Push op $ 21,400- $ 21,500 ass méiglech an Dir wëllt hei net kuerzfristeg ouni eng bearish Bestätegung.
At time of writing, Bitcoin is changing hands for $21,377, up over 5% in the last 24 hours.
Capo next takes up altcoins, Seet he remains bullish on crypto assets other than Bitcoin for the moment.
“I’m still bullish on altcoins but being cautious (trailing the SL [stop loss] in profits). I will turn full bearish soon.”
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Source: https://dailyhodl.com/2022/11/05/analyst-who-called-this-years-crypto-crash-issues-dire-btc-warning-says-bitcoin-collapse-imminent/