An analyst who became popular after accurately calling the 2022 crypto meltdown is warning that Bitcoin (BTC) may hit a local top at any moment.
Pseudonymous analyst Capo tells his 102,828 subscribers on the instant messaging platform Telegram that Bitcoin may abruptly retrace and give up its recent large gains.
“I’m still out of the market for a few weeks now. At this point, it doesn’t matter if [Bitcpon] reaches $98,000, $99,000, or if it goes above $100,000. The local top could occur at any moment, and this movement could be fully retraced.”
Capo lists a number of reasons why he believes a correction is likely, including that pro-crypto US President-elect Donald Trump doesn’t take office until January 20th.
“Some of the reasons why I’m still being cautious:
- Sentiment is extremely bullish here. Retail is piling in massively, aping into memecoins. The memecoin rally feels overextended, and that’s unhealthy. A strong correction is overdue, and it will likely affect the entire market.
- Trump is still not in power. The Democrats are still governing the country, and despite saying the transfer of power would be ‘smooth and in a peaceful way,’ they are already trying to provoke a big war. In my view, this is a desperate attempt to apply the martial law or/and leave Trump in a complicated position…
- Also, the US government holds 208,109 BTC (currently $20.15 billion). They recently got approval to sell the Silk Road Bitcoin, likely through auctions or gradual sales. Honestly, it wouldn’t be surprising if they timed it to tank BTC prices and make the next administration look bad – or just to make sure they don’t leave those BTC behind for them to use.
- The dollar has been showing strength while BTC was pumping, forming a divergence.
- Many altcoins are showing weakness and testing major levels as resistance. It’s mostly a BTC and memecoins run, which is never a good sign. Not ruling out a few final altcoins pumps, but if my thesis is right, they could dump 60-80% over the next few weeks.”
Bitcoin is trading for $98,994 at time of writing.
Generated Image: Midjourney
