One of the popular cryptocurrency analysts who predicted the fall of the cryptocurrency market at the beginning of this year, is not very convinced of the rebound that Bitcoin, Ethereum and the rest of the altcoins are presenting, so he warns of the danger of this rally.
Known as El Capo de las Criptos, who has 450K followers on his Twitter account, he comments that he is still out of the cryptocurrency market, as he believes that the price of Bitcoin (BTC) continues to be dominated by bears / vendors.
Buenos dias! I hope you all enjoyed the weekend.
What we have here for $BTC is basically a range. Now the key is known if it’s accumulation or redistribution.
-Range is small compared to the other ones. Accumulations are usually large.
-Funding is mostly positive.
1/3 pic.twitter.com/mi1DplWz55
— il Capo Of Crypto (@CryptoCapo_) July 18, 2022
“What we have here for BTC is basically a range. Now the key is to know if it is accumulation or redistribution.
The range is small compared to the others. The accumulations are usually large.
Funding is mostly positive.
Open interest is piling up like crazy (opening positions) and adding a lot to the delta of accumulated volume, which means the longs are mimicking very aggressively.
In my opinion, this is clearly redistribution. Longs stuck in the same setup we’ve been seeing these months while indicators are bearish.”
Bitcoin (BTC) and Ethereum (ETH) price
Bitcoin (BTC) is trading at $21750 at the time of writing. The top-ranked cryptocurrency by market capitalization is up more than 7% in the last 24 hours and more than 11% in the last seven days. In yesterday’s session, the price of BTC touched $22,958. However, it is still down almost 69% from its all-time high of over $69K, which it reached last November.
In the case of Ethereum (ETH), the rally has been greater, also largely due to the publication of the expected date for the Merche Fusion (September 19). Yesterday it reached $1630. Right now it is right at $1515.
Capo also comments that there are “a lot of hidden bearish divergences” visible from a zoomed-in view of the market, suggesting that the recent rally is likely to be temporary. That is why he calls this latest price bounce a “scam bomb”, convinced that Bitcoin will eventually retrace. With which, there are several reasons that he names the analyst to think about the danger of this latest bullish rally of cryptocurrencies.
You also have to remember that we are just into a corporate earnings week, which will make the markets even more turbulent. So it is best to operate very cautiously.
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