A widely followed Bitcoin (BTC) analyst who predicted the 2022 BTC collapse is spotting a potential bear trap in the brush.
Pseudonymous crypto trader Capo tells their 547,900 Twitter followers that the US Dollar Index (DXY) and traditional stocks are setting up for a BTC rebound.
“DXY bounce is looking weak and it wants to dump again.
SPX at support.
BTC looks good for $20,500-$21,000.”
The king crypto is down 2.5% over the last 24 hours, currently going for $19,555. Still, Capo believes the slump is nothing more than a “bear trap” signaling that a bounce is imminent for BTC.
“Bear trap… Bounce incoming.”
Turning to the charts, Capo says BTC’s low time frame (LTF) target remains at $21,000.
“BTC LTF
Same plan. Price is at support and late longs have been liquidated.
Main target for the local top remains $20,500-$21,000.
Bearish confirmation: clean break of $19,000.”
Capo also looks at BTC sentiment to support his bouncing Bitcoin hypothesis.
“Sentiment is ultra bearish even though price keeps printing higher lows on LTF.
Bounce is very likely.”
With the largest crypto by market cap down by nearly 3% over the last day, Capo still says all of today’s losses will be regained.
“Today’s dump about to be fully reversed.”
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Source: https://dailyhodl.com/2022/10/07/trader-who-accurately-called-this-years-crypto-crash-says-bitcoin-rally-imminent-heres-his-outlook/