A popular crypto strategist and trader is predicting a swift recovery for Bitcoin (BTC) while saying that altcoins are positioning for an epic surge.
Pseudonymous analyst Capo tells his 217,800 Twitter followers that he believes Bitcoin is now ready for a steep rise in value as funding rates turn negative due to the most recent correction.
“BTC. Main scenario is more likely now.”
A negative funding rate indicates that traders are short on Bitcoin or are heavily betting that BTC will continue correcting, suggesting an overly bearish sentiment.
Should Bitcoin rally, traders who are short on BTC will be forced to close their positions and buy higher, leading to a strong surge or a short squeeze.
Capo adds that as long as funding remains negative, a V-shaped recovery or a sharp rise in BTC’s value is on the table.
The crypto analyst also suggests that BTC’s most recent correction mirrors the Covid-19-induced crash that happened in March 2020.
$BTC pic.twitter.com/EKdOIs4jbD
— il Capo Of $NOIA (@CryptoCapo_) December 5, 2021
Looking at altcoins, the crypto strategist says that the OTHERS chart, which tracks the performance of the top 125 digital assets excluding Bitcoin, is still trading within a parabolic trajectory.
“This is not the end. Altcoins.”
Looking at Capo’s chart, he’s predicting that the valuation of the 125 largest crypto assets sans Bitcoin will rise above $3 trillion in 2022.
Capo notes that he’s currently “all-in altcoins” and he’s keeping a close watch on coins that are recovering faster after the crash.
“Those are the ones that will surely perform better in the coming weeks.”
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Featured Image: Shutterstock/Zvereva Yana/Natalia Siiatovskaia
