Trading the cryptocurrency market is full of polarizing opinions and controversial figures. Among the most notorious is a much-loathed cryptocurrency trader who has been remarkably candid about his bearish bias.
Under the pseudonym Crypto Capo, he recently shared strategic insights, shedding light on his thought process when analyzing the market.
The Bearish Stance: Expecting a Crypto Market Downturn
Remains Crypto Capo committed to its bearish outlook, with 70% of its portfolio outside the crypto market. He is short circuit select leveraged altcoins with the remaining 30% of your portfolio.
The renowned cryptocurrency trader anticipates that the market will remain stagnant, waiting for significant news that trigger movement.
According to Crypto Capo, several altcoins have been breaking key support levels. Likewise, the โ0-B/0-X trend linesโ are about to do so. Other altcoins have already hit new lows, confirming that the move up from the December low was simply a correction.
The cryptocurrency trader expects a massive sale in the near future. He believes that altcoins could potentially 60-80% dropand BitcoinThe main goal of is $12,000.
Fundamental factors driving the bearish outlook
- He Binance Effect: Binance, one of the largest cryptocurrency exchanges, owns 70-80% of the BNB supply. With the recent legal challenges, the company is allowed to sell BNB, mirroring the situation with FTT.
- Price manipulation: The cryptocurrency trader argues that manipulative BUSD fueled the strong bull run in early 2021. Sam Bankman-Fried took similar actions with FTTalbeit publicly. Binance CEO Changpeng Zhao went public with a $1 billion BUSD fund, and due to regulatory restrictionsno more BUSD can be minted.
Technical analysis: Signs of an impending recession
- Distribution of Whales in the Dark Zone: Crypto Capo maintains that the chart below shows a light distribution above the dark zone. This could potentially indicate that large investors such as Binance are unloading their holdings. A clean break below this support level at $210, which has been tested multiple times, could confirm this.
- The corrective pattern of the 2022 low: The cryptocurrency trader is looking at a corrective pattern formed from the 2022 lows. This type of bearish flag could indicate a downtrend.
- The striking similarity to the FTT graph: The BNB chart resembles the FTT chart. Crypto Capo believes that the only difference is that the BNB timeline is longer.
Since the range of distribution has been maintained for over two years, the resulting range expansion could potentially drive prices down significantly.
Deciphering the strategy of a hated crypto trader
While the bearish outlook of this controversial cryptocurrency trader may not be everyone's cup of tea, understanding his ideas can provide valuable insight. context for market analysis.
By exploring the fundamental and technical factors that shape their strategy, investors can gain a more complete understanding of the current state of the crypto market and make informed decisions accordingly.
Disclaimer
In accordance with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to providing accurate and unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions.
