Analyst Capo, who correctly predicted the collapse of Bitcoin (BTC) earlier this year, came up with his new comments. The cryptocurrency analyst predicts rally for Bitcoin and Ethereum (ETH). Here are the details…
Analyst says short selling for BTC is not a good idea
Known as Capo in the industry, the analyst shared his BTC and ETH predictions to his 559,600 Twitter followers. He said he believes crypto bears are providing fuel for a rally. For this reason, he says, “it is time” for Bitcoin to act. He points to rising “heat maps” while saying that price action looks “bullish”. He reports that all he sees is short squeezes. Stating that it is not a good idea to short at support levels, this would send BTC to $21,000.
cryptocoin.com As we have also reported, short squeeze is a phenomenon that has spread from the stock markets to the cryptocurrency space. Short squeeze is a phenomenon that investors who act with the assumption that an asset will fall, experience when the asset makes a rise. Shorting a stock usually involves borrowing the stock from a broker (in this case, futures trading platforms for cryptocurrencies). There is hope of buying back cheaper to make a profit later on.
According to data from market analysis company Coinglass, traders have opened $3.63 billion in short positions in the last 24 hours. Meanwhile, Bitcoin is changing hands at $19,289, up 0.7 percent. In the last 7 days, it has been moving quite horizontally with a 0.1 percent change.
Next up for Ethereum: “Untapped liquidity”
The crypto analyst looking at Ethereum says that ETH has “unused liquidity.” He believes ETH is poised for a rally above $1,400. The analyst believes that a “liquidity game” is currently being played. Traders often look for areas of high liquidity because investors with large positions affect prices. For this reason, they believe that investors will move towards that region to easily find buyers or sellers. At the time of writing, Ethereum is trading at $1,362, up 3.92 percent on the day.
As for XRP, Capo warns that the sixth largest coin by market cap is likely poised for a steep correction towards its $0.17 target. At the time of writing, XRP has seen an increase of just over 1 percent in the past 24 hours. It changes hands at $0.46.
As it is known, Capo has called for $ 16,000 in Bitcoin in the past months. In 2021, he correctly predicted that BTC could fall from its highs to $ 50,000. He also correctly guessed the price action of BTC, which fell to $ 3,500 at the beginning of 2019. For this reason, it is widely followed in the industry. Nevertheless, as we conclude our article, we would like to state that it would be best for each investor to invest in line with their own research.
