Analyst Who Called 2022 Bitcoin Crash Predicts Impending Rally for BTC and Ethereum, Issues Warning to XRP Holders
The crypto strategist who accurately called Bitcoin’s collapse earlier this year says rallies are in sight for both BTC and Ethereum (ETH).
The pseudonymous analyst known in the industry as Capo says his 559,600 Twitter followers that “it’s time” for Bitcoin to make a move that he believes crypto bears are gives the fuel for a rally.
“Price action looks bullish. Heatmap looks bullish…
All I see is a lot of shorts that should be squeezed. Shorting support is not a good idea. Send it to $21,000.”
A short squeeze occurs when traders who borrow units of an asset at a certain price in hopes of selling them at a lower price to pocket the difference are forced to buy assets back when the trade moves against their bias.
Data from market research firm Coinglass shows that traders have accumulated $3.63 billion in short positions over the past 24 hours at the time of writing.
Currently, Bitcoin is exchanging hands at $19,453, up 1.70% on the day.
Looking at Ethereum, the cryptoanalyst believes that ETH is preparing for a rally above $1,400, a price level that he says has “untapped liquidity.”
“Liquidity games.”
Traders often look for areas of high liquidity as they believe that investors with large positions will influence the price to move towards this area to easily find buyers or sellers.
At the time of writing, Ethereum is trading at $1,362, up 3.92% on the day.
As for XRP, Capo warns that the sixth-largest crypto by market capitalization is likely poised for a steep correction toward his target of $0.17.
“XRP main scenario.”
At the time of writing, XRP is valued at $0.467, up just over 1% in the last 24 hours.
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