en
Back to the list

Is the Bitcoin Bottom In? Top Crypto Analyst Outlines Potential Path Ahead, Issues Weekly Close Warning


dailyhodl.com 21 July 2021 22:24, UTC
Reading time: ~2 m

It’s crunch time for Bitcoin and the crypto markets, according to a popular analyst.

The pseudonymous trader known as Capo tells his 140,000 Twitter followers that Bitcoin may still be in a Wyckoff accumulation pattern, with BTC setting itself for a big move to the upside when the pattern completes.

 

The Wyckoff method is a technical analysis approach that aims to identify whether big-money investors are accumulating or selling an asset. An accumulation pattern highlights a period where institutional investors are controlling an asset’s price in an effort to buy at discounted prices.

According to Capo, Bitcoin may be forming a near-perfect Wyckoff schematic #2, implying that the bottom is almost in for the world’s biggest crypto asset by market cap.

Source: Capo/Twitter

Contrary to what some high-profile investors have said, the analyst is doubtful that investors waiting on the sidelines will have a chance at buying BTC around $20,000.

“I am convinced that this is accumulation. Do you really think that the majority will get $25,000 or $20,000?”

Capo also puts the spotlight on the prolonged negative funding rates, as well as the lack of a sell signal from the widely-followed Puell Multiple indicator as reasons to be bullish.

$BTC funding & premium

Another reason I'm bullish is because funding and premium have remained negative throughout this range.

The Puell Multiple indicator showed a buy signal some days ago. pic.twitter.com/tigu40eK7M

— il Capo Of $NOIA (@CryptoCapo_) July 19, 2021

The crypto analyst points out that the Puell Multiple – which divides the daily issuance value of BTC by a 365-day moving average of daily issuance value – hasn’t yet flashed the typical top signal that it formed in previous bull markets.

Source: Capo/Twitter

Though Capo maintains his bullish stance on Bitcoin, he cautions that if BTC finishes the week under $30,000, things could get ugly.


   Source
Back to the list