Analyst Capo, who accurately knew the Bitcoin crashes this year, tweeted that the current rise in the crypto market is the “biggest bull trap” it has ever witnessed.
Capo says Bitcoin price is manipulated, no real demand
As we have reported as Kriptokoin.com, the analyst, who has come to the fore with his accurate predictions before, reported in his new analyzes that he keeps notes of all activities in the market and constantly checks the charts while avoiding the community’s reaction to it on Twitter. Capo does not find the upside movement that has taken place and the way high timeframe resistances tested unrealistic. On January 21, he wrote on Twitter about a potential bull trap:
I checked all these timelines to avoid the noise from Twitter. The way the up move is happening, the way htf resistors are tested… it seems clearly manipulated, no real demand. Once again the biggest bull trap I’ve ever seen. But they won’t trap me.
I've been checking charts all this time, avoiding noise from Twitter. The way the upward movement is happening, the way htf resistances are being tested… it clearly looks manipulated, no real demand.
Once again, the biggest bull trap I've ever seen. But they won't trap me.
— il Capo Of Crypto (@CryptoCapo_) January 21, 2023
The Twitter crypto community’s reaction to the tweet was replete with a series of memes showing that Capo was a “bad trader” who failed to adapt to new data and therefore lost many monetization opportunities due to personal bias.
Also, on Saturday morning, January 21, 2023, Bitcoin price reached a 24-hour high of $23,333. The value of the entire cryptocurrency market increased by 7.2% compared to the US dollar, reaching $1.05 trillion.
Bitcoin surpasses SPY and gold from underperforming bear market
Despite Capo’s bull trap warnings, Bitcoin has reached a leading position among global assets outperforming major asset classes. The current rally continues into the weekend as Bitcoin hits $23,230 for the first time since August 2022. Bitcoin is currently up 50% from its November low of $15,400.
Also, 2023 saw growth in multiple sectors as inflation began to cool. Since November’s lows, gold and the S&P500 are up 19% and 13%, respectively. However, on January 21, the markets witnessed over $387 million in crypto liquidations, the majority of which includes BTC and ETH totaling $165 million. This shows that cryptocurrencies mislead investors who take reverse positions.
During this bear market rally, shorts dominated liquidations. However, this does not mean that long positions are completely safe. As Bitcoin continues to rally, frequent pullbacks at key resistance levels caught the bulls off guard. For example, on Jan. 18 and Jan. 21, BTC longs liquidated over $30 million.
In summary, Capo, looking at all these data, does not find it realistic to test the upward movement and high resistances. The analyst previously predicted that Bitcoin would hit $50,000 in the months after its November peak in 2021.
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