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.
— 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.
“Those are the ones that will surely perform better in the coming weeks.”Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Zvereva Yana/Natalia Siiatovskaia