Trading the cryptocurrency market is full of polarized opinions and controversial personalities. Among the most notorious is a widely hated cryptocurrency trader who has been remarkably vocal about his bearish bias.
Under the pseudonym Crypto Capo, he recently shared strategic insights, shedding light on his thought process when analyzing the market.
Bearish Situation: Withstand the cryptocurrency market downturn
Crypto Capo remains committed to its bearish outlook, with 70% of its portfolio exiting the crypto market. He is selling the selected altcoins on leverage with the remaining 30% of his portfolio.
Famous crypto trader Expect The market will continue to stagnate waiting for important news to trigger the movement.
According to Crypto Capo, several cryptocurrencies have broken through key support levels. Likewise, the “0-B/0-X trendlines” are about to do so. Other altcoins have already reached new lows, confirming that the upward move from the December low was just a correction.
The cryptocurrency trader is anticipating a massive sell-off in the near future. He believes that altcoins could drop by 60-80%, with Bitcoin’s primary target at $12,000.
Fundamental factors driving the bearish outlook
- Binance effect: Binance, one of the largest cryptocurrency exchanges, owns 70-80% of the BNB coin supply. With the recent legal challenges, the company may sell BNB, mirroring the situation with FTT.
- Price manipulation: The cryptocurrency trader argues that it was the manipulated BUSD that led to a strong buying rally in early 2021. Sam Bankman-Fried took similar actions with FTT, albeit publicly. Binance CEO Changpeng Zhao has gone public with a $1 billion BUSD fund, and no more BUSD can be mined due to regulatory restrictions.
Technical analysis: signs of an impending downturn
- The spread of whales in the dark area: Crypto Capo maintains the below chart showing a clear distribution above the dark area. This may indicate that large investors, such as Binance, are unloading their holdings. A clear break below this support level at $210, which has been tested several times, could confirm it.
- Corrective model from the bottom of 2022: The cryptocurrency trader notices a corrective pattern consisting of the 2022 lows. This type of bearish flag might indicate a downtrend.
- The striking similarity of the FTT chart: The BNB chart is similar to the FTT chart. Crypto Capo believes that the only difference is that the BNB timeline is more extended.
Given that the distribution range has lasted for more than two years, the subsequent range expansion is likely to push prices down significantly.
Decoding the Strategy of a Hated Crypto Trader
While the controversial cryptocurrency trader’s bearish perspective may not sit well with everyone, understanding his view can provide valuable context for market analysis.
By exploring the fundamental and technical factors that make up his strategy, investors can gain a more comprehensive understanding of the current state of the crypto market and make informed decisions accordingly.
In line 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 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.