2023-5-1 13:49 |
The cryptocurrency market trading is full of polarizing opinions and controversial figures. Among the most notorious is a widely disliked crypto 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: Holding Out for a Crypto Market DownturnCrypto Capo remains committed to his bearish outlook, with 70% of his portfolio out of the crypto market. He is shorting select altcoins with leverage with the remaining 30% of his portfolio.
The renowned crypto trader anticipates that the market will continue to stagnate, awaiting significant news to trigger movement.
Altcoins Market Cap. Source: TradingViewAccording to Crypto Capo, several altcoins have been breaking key support levels. Likewise, the” 0-B/0-X trendlines” are on the verge of doing so. Other altcoins have already reached new lows, confirming that the upward movement from December’s low was merely a correction.
The crypto trader expects a massive sell-off in the near future. He believes that altcoins could potentially drop 60-80%, and Bitcoin’s primary target is $12,000.
Fundamental Factors Driving the Bearish Outlook The Binance Effect: Binance, one of the largest cryptocurrency exchanges, holds 70-80% of the BNB supply. With recent legal challenges, the company may sell BNB, mirroring the situation with FTT. Price Manipulation: The crypto trader argues that manipulative BUSD drove the strong bull run in early 2021 buys. Sam Bankman-Fried took similar actions with FTT, albeit publicly. Binance CEO Changpeng Zhao went public with a $1 billion BUSD fund, and due to regulatory restrictions, no more BUSD can be minted. Technical Analysis: Signs of an Impending Downturn Whale Distribution in the Dark Zone: Crypto Capo maintains the chart below shows a clear 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 from 2022’s Low: The crypto trader notes a corrective pattern formed from the lows of 2022. This sort of bearish flag could signal a downward trend. The Striking Similarity to the FTT Chart: The BNB chart resembles the FTT chart. Crypto Capo believes the only difference is that BNB’s timeline is more extended. Binance Coin (BNB) US Dollar Price Chart. Source: TradingViewGiven that the distribution range has persisted for over two years, the ensuing range expansion could potentially drive prices significantly lower.
Deciphering the Strategy of a Hated Crypto TraderWhile the bearish perspective of this controversial crypto trader may not sit well with everyone, understanding his insights can provide valuable context for market analysis.
By exploring the fundamental and technical factors shaping his strategy, investors can gain a more comprehensive understanding of the current state of the crypto market and make informed decisions accordingly.
The post Uncovering the Secrets Behind a Notorious Bearish Crypto Trader appeared first on BeInCrypto.
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