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Traders following last year’s epic Bitcoin (BTC) meltdown have warned that the current rally won’t end well for cryptocurrency bulls.
Pseudonym Analyst Capo To tell His 710,100 Twitter followers indicate that he believes real organic demand is not the cause of crypto market strength.
“I’ve been checking the charts all the time avoiding the twitter noise. The way the upward movement is happening, the way the high timeframe resistance is being tested… clearly looks manipulated, no real demand Once again, the biggest bull trap I’ve ever seen, but they don’t trap me.”
Capo doubled down on his bearish stance when a fellow trader pointed out that stablecoins were being minted as bitcoin rose from $18,000, suggesting real demand.
“The longer the artificial pump, the bigger and more aggressive the drop.”
Last week, Capo said Bitcoin was in the process of testing significant resistance near $21,000.
“It’s a long time frame.
BTC is still testing big resistance. Weekly closes will be key, but there is no bullish confirmation yet.”
At the time of writing, Bitcoin is trading at $22,782, well above traders’ key resistance zones.
Meanwhile, another analyst is short-term bearish on Bitcoin. Smart Contracter, the pseudonymous crypto strategist who precisely called BTC’s 2018 bottom, believes Bitcoin will pull back after rising nearly 38% this month.
“I think BTC is due to the weeks pullback of wave 4. All subwaves within this wave 3 seem to be done, so it’s definitely time to start taking profits.
We are aiming for reshipment in the $21,000 range. ”
Smart contracts practice the Elliott Wave theory. Elliott Wave Theory is an advanced technical analysis approach that attempts to predict future price action according to the herd psychology that tends to manifest in waves. According to theory, a bullish asset rises in waves 1, 3 and 5 and corrects in waves 2 and 4.
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Disclaimer: Opinions expressed on The Daily Hodl are not investment advice. Investors should exercise caution before making risky investments in Bitcoin, cryptocurrencies or digital assets. Please note that your money transfers and transactions are made at your own risk and you are responsible for any losses you may incur. The Daily Hodl does not endorse the buying or selling of cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. The Daily Hodl participates in affiliate marketing.
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