Crypto analyst known for naming Bitcoin Bottoms Issues Alert says crypto is forming the biggest bull trap he has ever seen
The trader who nailed Bitcoin’s (BTC) epic collapse last year is issuing a warning, saying the current rally will not end well for crypto bulls.
Pseudonymous analyst Capo tells his 710,100 Twitter followers that he believes real and organic demand is not responsible for the strength of crypto markets.
“I was checking charts all the time and avoiding the noise of Twitter. The way the move up is going, the way high time frame resistances are being tested… It clearly looks rigged, no real demand. Once again the biggest bull trap I have ever seen. But they won’t catch me.”
When a fellow trader pointed out that stablecoins would be minted as Bitcoin surged from $18,000 to indicate real demand, Capo doubled down on his bearish stance.
“The longer an artificial pump, the bigger and more aggressive the drop becomes.”
Last week, Capo said that Bitcoin is about to test the major resistance around $21,000.
“High time frame.
BTC is still testing major resistance. The weekly close will be crucial but there is no bullish confirmation yet.”
Source: Capo/Twitter
At the time of writing, Bitcoin is changing hands at $22,782, well above the trader’s key resistance zone.
Meanwhile, another analyst is bearish on Bitcoin in the near-term. Pseudonymous crypto-strategist Smart Contracter, who correctly pinpointed BTC’s 2018 bottom, believes Bitcoin is poised for a pullback after rising nearly 38% this month.
“I think BTC is in for a multi-week fourth wave pullback. All sub-waves within this wave three look complete, so it’s definitely time to start taking profits.
I want to recharge in the $21,000 range again.”
Smart Contracter practices Elliott Wave Theory, an advanced technical analysis approach that attempts to predict future price movements by following crowd psychology, which tends to manifest itself in waves. According to the theory, a bullish asset rallies in waves one, three, and five while correcting in waves two and four.
Don’t miss a thing – Sign up to receive crypto email alerts straight to your inbox
Check the price action
Follow us on Twitter, Facebook and Telegram
Surf the Daily Hodl Mix
Check the latest headlines
 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any risky investments in bitcoin, cryptocurrency or digital assets. Please note that you transfer and trade at your own risk and any losses you incur are your responsibility. The Daily Hodl does not recommend the purchase or sale of cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured image: Shutterstock/Terablete
Image generated: DALLE-2
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.