Analysts who called Bitcoin and Crypto Meltdown say there will be “no mercy” for traders who become euphoric
The strategist who predicted this year’s Bitcoin (BTC) collapse below $ 30,000, says that the crypto market’s latest bounce is likely to be short-lived.
Pseudonym cryptostrateg Capo says His 434,400 Twitter followers that the Bitcoin rally experienced by rising above $ 22,000 are unconvincing at a time when the US Dollar Index (DXY) is in the middle of a parabolic rally.
Traders are often bearish on risk-on assets such as crypto when the DXY flashes signs of strength, as it indicates that investors are flying to the safety of the US dollar.
According to Capo, Bitcoin is likely to face strong opposition while altcoins appear to be ready for a 50% devaluation.
“DXY goes parabolic. Bitcoin goes up a bit and people get euphoric and call for $ 40,000. Not a single bullish sign supports this rise, and the price is still at $ 21,000 – $ 22,000 (resistance).
Rejection will be strong. Altcoins can fall 45-50%. It will not be mercy. “
Bitcoin is trading at $ 21,639 at the time of writing, a jump of around 15% from this month’s low of $ 18,781.
Among the altcoins that Capo expects to witness steep haircuts include Binance Coin (BNB) and XRP. Earlier this week, Capo set a bottom line for BNB between $ 125 and $ 135 while he so XRP can drop to as low as $ 0.14.
At the time of writing, Binance Coin is changing hands for $ 242. Meanwhile, the XRP is valued at $ 0.34.
Capo too sier he closely monitors the order books of some crypto exchanges to track the depth of purchase orders for BTC and Ethereum (ETH). According to the crypto strategist, deep pockets investors place false buy orders to force the price of BTC and ETH higher in an attempt to catch bulls for the next stage down.
“Kraken and some other exchanges like FTX have forged every bounce, just to fill the sales orders above. Both on BTC and ETH. It’s not an organic move up, but a fake one. An ox trap.
When they pull the spoofing orders, the market goes to new downturns. They just pulled them. “
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Featured image: Shutterstock / sackmaster / Andy Chipus
