Crypto Analyst Capo Warns That Latest Bitcoin Rally Looks Like Bull Trap
A crypto analyst who correctly predicted Bitcoin’s fall below $30,000 is warning traders again, saying that today’s market rally looks like a bull trap.
The analyst known as Crypto Capo shared with his 325.6K followers on Twitter that he still expects large price drops for altcoins and Bitcoin (BTC) in the near term.
The analyst tweeted that the last time the S&P 500 (SPX) reached new highs, the Bitcoin was making lower lows. What happened next was further bearish momentum for BTC after an SPX reversal. Capo notes that SPX is currently at a key resistance level, which could have it reversing once again.
“Last time SPX rallied making a new high while BTC was making lower highs, we saw bearish continuation once SPX reversed. Now SPX is at resistance.”
Last time #SPX rallied making a new high while $BTC was making lower highs, we saw bearish continuation once SPX reversed. Now SPX is at resistance. pic.twitter.com/Nwl6VyTlaF
Capo also shared with his followers that he sold his entire altcoin portfolio other than stablecoins before the market crash which wiped out 70-99% of their value earlier in May.
“I was all-in alts during the bull run, when BTC went from $10,000 to $69,000, and then sold them all with BTC at $41,500 on average, avoiding a 70-99% drop during these past weeks. Now still in stablecoins waiting to re-enter the market.”
I was all-in alts during the bull run, when BTC went from $10k to $69k, and then sold them all with BTC at $41.5k on average, avoiding a 70-99% drop during these past weeks. Now still in stablecoins waiting to re-enter the market. https://t.co/I68U890kd2
