A popular analyst who called the crypto price collapse earlier this year isn’t sold on the market’s latest upswing.
The pseudonymous trader known as Capo tells his 449,400 Twitter followers that he’s still fully out of the crypto market as he believes the price action of Bitcoin (BTC) suggests sellers remain in control.
“What we have here for BTC is basically a range. Now the key is know if it’s accumulation or redistribution.
- Range is small compared to the other ones. Accumulations are usually big.
- Funding is mostly positive.
- Open interest is building up like crazy (positions opening) and cumulative volume delta increasing a lot, which means that the longs are aping very aggressively.
In my opinion, this is clearly redistribution. Longs trapped in the same setup we have been seeing these months, while indicators are bearish.”
BTC is trading for $22,107 at time of writing. The top-ranked crypto asset by market cap is up more than 7% in the past 24 hours and more than 11% in the past seven days. Bitcoin, however, remains down nearly 68% from its all-time high of more than $69,000, which it hit last November.
Capo also says there are “a lot of hidden bearish divergences” visible from a zoomed-out view of the market, suggesting that the recent surge is likely to be temporary. He calls the latest price bounce a “scam pump,” convinced that Bitcoin will eventually retrace.
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Featured Image: Shutterstock/Salamahin/Mia Stendal
