The most hated crypto trader reveals insights into bearish bias

The cryptocurrency market is full of polarizing opinions and controversial figures. Among the most notorious is a much-maligned crypto trader who has been remarkably candid about his bearish bias.

Under the pseudonym Crypto Capo, he recently shared strategic insights, shedding light on his thought process when analyzing the market.

The Bearish Stance: Holding out for a downturn in the crypto market

Crypto Capo remains committed to his bearish outlook, with 70% of his portfolio outside the crypto market. He short select leveraged altcoins with the remaining 30% of his portfolio.

The renowned crypto trader expects the market to continue to stagnate, pending significant news to trigger movement.

According to Crypto Capo, several altcoins have broken key support levels. Likewise, the “0-B/0-X trend lines” are on the verge of doing so. Other altcoins have already hit new lows, confirming that the upward move from December’s lows was just a correction.

The crypto trader expects a massive sell-off in the near future. He believes that altcoins could potentially fall 60-80%, and Bitcoin’s primary target is $12,000.

Basic Factors Driving Bearish Outlook

• The Binance Effect: Binance, one of the largest cryptocurrency exchanges, has 70-80% of the BNB supply. With recent legal challenges, the company can sell BNB, which mirrors the situation with FTT.
• Price manipulation: The crypto trader argues that manipulative BUSD drove the strong bull run early in the 2021 buying. Sam Bankman-Fried took similar actions with the FTT, albeit publicly. Binance CEO Changpeng Zhao went public with a $1 billion BUSD fund, and due to regulatory restrictions, no more BUSD can be minted.

Technical analysis: Signs of an impending downturn

• Whale distribution in the dark zone: Crypto Capo maintains the chart below shows a clear distribution over the dark zone. This could potentially indicate that large investors, such as Binance, are offloading their holdings. A clean break below this $210 support level, which has been tested several times, could confirm this.
• The corrective pattern from the 2022’s Low: The crypto trader notes a corrective pattern formed from the 2022 lows. This type of bearish flag can signal a downtrend.
• The striking similarity to the FTT chart: The BNB chart is similar to the FTT chart. Crypto Capo believes the only difference is that BNB’s timeline is more extended.

Given that the distribution committee has persisted for over two years, the subsequent expansion could potentially drive prices significantly lower.

Deciphering the strategy of a hated crypto trader

While the bearish perspective of this controversial crypto trader may not sit well with everyone, understanding his insights can provide valuable context for market analysis.

By exploring the fundamental and technical factors that shape his strategy, investors can gain a more comprehensive understanding of the current state of the crypto market and make informed decisions accordingly.