Analyst Who Called 2022 Bitcoin Collapse Flips Bullish on BTC – But There’s a Catch
A popular crypto analyst who has been bearish on Bitcoin for most of 2022 reveals a potential silver lining for BTC.
The pseudonymous trader Capo says his 492,100 Twitter followers that trader activity following Bitcoin’s recent drop towards $20,000 means a short squeeze is possible and now he is bullish on BTC until it regains the $23,000 resistance level.
A short squeeze occurs when traders who borrow units of an asset at a certain price in hopes of selling lower to pocket the difference (short) are forced to buy back when the trade moves against their bias.
“There are a lot of shorts opening here at the support after taking the lows. Short squeeze is still likely. I am short-term bullish at $23,000-$23,500.”
The analyst then follows up a post from August 24 to confirm his belief that after Bitcoin rises towards $23,500, the top crypto asset will likely fall back towards $16,000 by mid-September.
“Same idea despite choppy range.
$23,000-$23,500, then down to new lows.”
At the time of writing, Bitcoin is down along with most other markets in response to the Federal Reserve’s announcement on Friday that it has no intention of cutting interest rates anytime soon.
BTC is down nearly 6% on the day and is trading at $20,341.
Capo is also following the scalable blockchain platform Cardano closely all week, and now updates his supporters to say that he sees ADA rallying with Bitcoin in the short term before heading to lower levels.
“Stop loss triggered at breakeven. Re-entered the trade from lower.
The risk/reward is too good and it matches the BTC analysis.”
Cardano is currently priced at $0.43, below Capo’s diagonal support but still within his risk parameters.
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Featured image: Shutterstock/Anton Chernigovskii
