3 - 4 minute read
The cryptocurrency market has been on a furious ascent in 2023, with Bitcoin (BTC) hitting a new all-time high above $30,000. However, not everyone is convinced that the rally in the crypto king is sustainable. Capo, a high-profile trader who has remained bearish on BTC throughout its 2023 rally, recently broke his silence to provide a market update.
According to a tweet by the pseudonymous analyst, Bitcoin’s recent breakout to $30,000 does not necessarily indicate that BTC has exited its long-term bear trend. Capo is reiterating his months-long bearish outlook and says there are more reasons to be negative than positive on what’s next for BTC. “After hours and hours of deep analysis and research, I still see many reasons to be bearish, much more than to be bullish”, stressed the trader.
Capo’s sentiment is consistent with that of other institutional investors, who have warned of a potential Bitcoin price crash in the near future. Nonetheless, Bitcoin bulls continue to dominate the market, with the asset still hovering around $30,000. Some analysts argue that the ample liquidity in the market, driven by a combination of government stimulus packages and institutional investor interest, is propping up the crypto market.
While Capo is bearish on BTC, he says he’s focused on betting against other large-cap altcoins such as Solana (SOL). “I’ve repeated many times that I’m short on BNB and TRX (now also SOL and AAVE), and I keep adding to the shorts. Find a tweet where I said that I shorted BTC. You won’t find it”, Capo stated.
According to the trader, trading is still a game of probabilities, and a BTC meltdown to $12,000 is still likely, even though Bitcoin bulls have mounted a stampede throughout the year. “$30,000 maybe had a 10-20% when we were at $19,000-$20,000 levels. $12,000 was more likely (and still is)”, says Capo in a recent tweet.
So, what does this mean for traders? The cryptocurrency market is notoriously volatile, and it is important for traders to exercise caution when investing in Bitcoin or other digital assets. Traders should carefully consider the risks and rewards involved in any investment before making a decision.
The Bottom Line
While Bitcoin bulls are celebrating the rally in the crypto king, Capo, a high-profile trader, remains unconvinced that the rally is sustainable. The trader warns that there are more reasons to be negative than positive on what’s next for BTC. This sentiment is consistent with that of other institutional investors who are warning of a potential Bitcoin price crash in the near future. Traders should be cautious when investing in the cryptocurrency market and carefully consider the risks and rewards involved.