Crypto Analyst Known For Calling Bitcoin Bottoms Issues Alert Says Crypto Forms Biggest Bull Trap He’s Ever Seen

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The trader who nailed Bitcoin’s (BTC) epic crash last year is issuing a warning, saying the current rally will not end well for crypto bulls.

Pseudonymous analyst Capo tells his 710,100 Twitter followers that he believes real, organic demand is not responsible for the strength of the crypto markets.

“I’ve been checking the charts this whole time, avoiding the noise of Twitter. The way the upside move is happening, the way the long-term resistances are being tested… Seems clearly manipulated, no real demand. Again, the biggest bull trap I’ve ever seen. But they won’t trap me.

When a fellow trader pointed out that stablecoins were being hit as Bitcoin rallied $18,000 to suggest real demand, Capo doubled down on his bearish position.

“The longer an artificial pump is, the bigger and more aggressive the drop will be.”

Last week, Capo said Bitcoin was testing major resistance around $21,000.

“High delay.

BTC is still testing major resistance. The weekly close will be key, but there is no bullish confirmation yet.

Source: Capo/Twitter

At the time of writing, Bitcoin is changing hands for $22,782, well above the trader’s key resistance zone.

Meanwhile, another analyst is short-term bearish on Bitcoin. Pseudonymous crypto strategist Smart Contracter, who correctly called BTC’s bottom in 2018, believes that Bitcoin should experience a pullback after rallying nearly 38% this month.

“I think BTC should suffer a multi-week pullback on the fourth wave. All of the subwaves in this wave three seem to be over, so it’s time to start taking advantage of it.

Looking to top up in the $21,000 range.

Source: Smart Contracter/Twitter

Smart Contractor practices Elliott Wave Theory, an advanced technical analysis approach that attempts to predict future price action by following crowd psychology which tends to come in waves. According to the theory, a bullish asset rallies during waves one, three and five, while it corrects during waves two and four.

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