An analyst who became popular after accurately calling the crypto meltdown of 2022 is warning that Bitcoin (BTC) could hit a local top at any time.
Pseudonymous analyst Capo tells are 102,828 subscribers to the instant messaging platform Telegram that Bitcoin could abruptly reverse and give up its recent big gains.
“I haven’t been to the market for a few weeks now. At this point it doesn’t matter if [Bitcpon] Reaches $98,000, $99,000, or if it goes above $100,000. The local top can emerge at any time and this movement can be fully monitored.”
Capo lists a number of reasons why he thinks a correction is likely, including the fact that pro-crypto US President-elect Donald Trump won’t take office until January 20.
“A number of reasons why I am still cautious:
- The sentiment here is extremely bullish. The retail industry is piling in and using memecoins en masse. The memecoin rally feels overloaded, and that is unhealthy. A strong correction is overdue and will likely affect the entire market.
- Trump is still not in power. The Democrats still rule the country, and despite claiming that the transition of power will be “smooth and peaceful,” they are already trying to provoke a major war. In my opinion, this is a desperate attempt to impose martial law and/or leave Trump in a complicated position…
- Additionally, the US government owns 208,109 BTC (currently $20.15 billion). They recently received approval to sell the Silk Road Bitcoin, likely through auctions or gradual sales. Frankly, it wouldn’t be surprising if they timed this to drive down BTC prices and make the next government look bad – or just to make sure they don’t leave that BTC behind for them to use.
- The dollar showed strength while BTC pumped and formed a divergence.
- Many altcoins are showing weakness and testing large levels as resistance. It’s mostly a BTC and memecoins run, which is never a good sign. I won’t rule out a few final altcoins pumps, but if my thesis is correct, they could dump 60-80% in the coming weeks.”
Bitcoin is trading at $98,994 at the time of writing.
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Generated image: Midjourney