The cryptocurrency market has been booming this week as Bitcoin hit nearly $23,000 and Ethereum crossed the $1,500 mark. The enthusiasm is back in the crypto sphere as most altcoins trade in the green for three consecutive days. Most importantly, the market recovered a $1 trillion market cap and sent out signals that there could be an uptick. However, a crypto analyst using the pseudonym Capo told half a million followers on Twitter not to trust the recent Bitcoin rally. The analyst who accurately predicted BTC’s crash called the latest rally a “scam pump.”
Also read: Cardano Price Prediction 2030: What ADA Could Be Worth in 8 Years
Capo shared the Bitcoin chart suggesting that all indicators point to “bearish” signals. He also warned followers that another crash could wipe out their investments. The analyst also claimed, “I stay out of the market.”
“What we have here for BTC is actually a range. Now the key is knowing whether it’s”s‘accumulation or redistribution. The range is small compared to the others. Accumulations are usually large. The financing is mainly positive. Open interest is building like crazy (opening positions) and cumulative volume delta is increasing a lot, meaning the longs are monkeying very aggressively,” he tweeted.
He added that all indicators for Bitcoin are primarily bearish: “In my view, this is clearly redistribution. Longs are stuck in the same setup we’ve seen these months, while the indicators are bearish.”
Also read: How 2 Low Paid Workers Became Millionaires With Shiba Inu
Should You Trust Bitcoin’s Recent Rally? Here’s our opinion
Although Bitcoin is making decent gains this week, the markets are still under pressure due to several global factors affecting the economy. Dow Jones is trading in the red this week and could cause a knock-on effect on the crypto market tomorrow. In addition, an uncontrollable economic crisis is unfolding in developing countries such as Sri Lanka and China. Reports state that many other countries such as Russia, Pakistan and Venezuela are on the same path of economic catastrophe.
Also, the euro and other fiat currencies are undervalued against the US dollar. The development is causing an imbalance in the import and export sector, forcing companies to raise prices to cover losses. The average Joe bears the brunt of the development and is forced to pay more for the goods and services.
Also read: Ethereum’sMost Recent Rally “Doubtful”: Here’s‘ What’sNext for ETH
Read here to take note of a range of economic problems currently affecting the world. Therefore, all these signals are that the markets may need time to recover and fall in price in the coming months.
Bitcoin, Ethereum and altcoins may see another slump and find it difficult to return to their current levels. Finally, it is advisable to remain careful and not to fall prey to the flash pump this week.
At the time of the press, Bitcoin traded at $21,770 and was up 0.3% in 24-hour day trading. It is also up 15% in the past 30 trading days.