The strategist who predicted this yr’s Bitcoin (BTC) collapse under $30,000 says the crypto market’s newest bounce will doubtless be short-lived.
Pseudonymous crypto strategist Capo tells his 434,400 Twitter followers that the rally Bitcoin skilled by surging above $22,000 is unconvincing at a time when the US greenback index (DXY) is within the midst of a parabolic rally.
Merchants are sometimes bearish on risk-on belongings like crypto at any time when the DXY is flashing indicators of power because it signifies traders are flying to the protection of the US greenback.
Based on Capo, Bitcoin will doubtless meet sturdy resistance whereas altcoins seem primed for a 50% devaluation.
“DXY going parabolic. Bitcoin going up a bit and folks getting euphoric and calling for $40,000. Not a single bullish signal to assist this transfer up and value remains to be at $21,000 – $22,000 (resistance).
Rejection shall be sturdy. Altcoins might drop 45-50%. There shall be no mercy.”
Bitcoin is buying and selling for $21,639 at time of writing, a bounce of about 15% from this month’s low of $18,781.
Among the many altcoins that Capo expects to witness steep haircuts embrace Binance Coin (BNB) and XRP. Earlier this week, Capo set a backside goal for BNB between $125 and $135 whereas he said XRP might drop to as little as $0.14.
At time of writing, Binance Coin is swapping arms at $242. In the meantime, XRP is valued at $0.34.
Capo additionally says he’s retaining a detailed watch on the order books of some crypto exchanges to trace the depth of purchase orders for BTC and Ethereum (ETH). Based on the crypto strategist, deep-pocketed traders are inserting spoof purchase orders to pressure the worth of BTC and ETH greater in an effort to lure bulls for the subsequent leg down.
“Kraken and another exchanges like FTX have been spoofing each bounce up, simply to fill promote orders above. Each on BTC and ETH. That’s not an natural transfer up, however a faux one. A bull lure.
After they pull the spoofing orders, market goes to new lows. They only pulled them.”
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Featured Picture: Shutterstock/sakkmesterke/Andy Chipus