Popular crypto analyst Capo says Bitcoin (BTC) is preparing for a new rally as it sits at $35,000
Popular crypto analyst Capo says that Bitcoin (BTC) is preparing for a new rally as it sits at $35,000.
In a statement to his 127 thousand Twitter followers, Capo talked about why the leading cryptocurrency is on the rise despite the recent price movements.
“You’ve seen that I’ve been tweeting a lot about bullishness these days. These are not random throws. I will explain some of the reasons why I think we will see new highs this year.”
The analyst points out that the famous Bitcoin Fear and Greed Index shows that fear is taking over the crypto markets.
As Capo points out, the creators of the index say that this is a sign that traders are overbearing and a reversal is likely.
“Market sentiment is down. All I see is people asking for lower prices, saying that the bull market is over, we’re in a three-year bear market… This is evident in the Fear and Greed Index.”
Capo also highlights that Bitcoin funding rates moved deeply to the negative and remained low during the drop to $30,000 in late May, suggesting that the sharp and sudden drop was a capitulation event.
Capo states that Bitcoin revealers may not be in an advantageous position as a result.
“Funding rates confirmed the capitulation event and turned very negative after the last drop. This means that long positions are ruined. When they stay that way for a long time, it means that the short positions are stuck and an accumulation phase is likely.”
The analyst also pointed out that in such an environment, Bitcoin protects the $30,000 level well.
Capo lastly compared Bitcoin’s recent dip to December 2020, when the asset only briefly entered the accumulation zone before setting new ATH levels. The analyst thinks that the two periods are similar.