Investor Capo is a widely followed trader with 563,000 Twitter followers. He predicted the crash of the crypto market in 2022. Recently, he spoke about the large wave of short-term liquidations seen during this week. Find out what this situation portends according to Capo.
The beginning of a correction in the crypto market?
According to one publication from Capo on Twitter on October 26, the current bounce in the BTC market will turn into a correction. The crypto analyst indeed claimed: “We’ve seen the biggest short-term sell-offs in recent months, proving that this move is a short squeeze and most people were positioned on the downside (hence the hate I’ve been getting lately). Now is the time for buyers to be trapped“.
According to Capo, we should expect, in the first place, a rally that will bring the price of BTC to around $21,000. However, secondly, there will be a correction and prices will fall again. Also, the crypto analyst predicted a drop for the S&P 500 Index (SPX). According to him, since the stock market is closely tied to BTC lately, the SPX should correct itself again too. The trader predicts a drop of around 20% for the stock index.
What do other BTC market traders think?
Many traders consider the current state of the cryptocurrency and stock markets to be indicative of rising prices. A famous trader called Alan had predicted that the next price cycle for BTC could be $35,000. “Bitcoin forms a flag on the previous flag configuration. The yellow area of the Stochastic indicator shows (at least) the second half of the flag, where we are currently“, he had declared.
He added : “Next low pole = $35,000. A quick rebound always follows a dip. No emotion, don’t get shaken“. BTC traders had seen this statement as a ray of hope. They hoped they could finally take solace in the fact that the flagship cryptocurrency had fallen as much as 75% from its all-time highs almost a year ago.
For many traders, current movements in the bitcoin (BTC) market indicate a future uptrend. However, the famous trader Capo predicts a correction for BTC. Meanwhile, the flagship crypto is trading around $20,600 currently.
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