June 4, 2023

A popular cryptocurrency analyst who has been bearish on Bitcoin for most of 2022 has revealed a potential silver lining for BTC.

Pseudonymous trader Capo Tell His 492,100 Twitter followers believe that trading activity after Bitcoin’s recent drop to $20,000 means a possible short squeeze, and he is now bullish on BTC until it revisits the $23,000 resistance.

A short squeeze occurs when a trader borrows a unit of an asset at a specific price in the hope of selling it low to earn the difference (short), forced to buy back because the trade goes against their bias.

“There is a lot of support here or bears after the lows. A bear squeeze is still possible. I am short-term bullish through $23,000 to $23,500. “

resource: Cabo/Twitter

Analysts follow up next in their Aug. 24 post reiterate He believes that the top crypto asset could fall back to $16,000 by mid-September after Bitcoin rose to $23,500.

“Same idea despite the wide range of volatility.

$23,000-23,500 before falling to new lows. “

resource: Cabo/Twitter

At the time of writing, Bitcoin fell along with most other markets in response to the Federal Reserve’s announcement on Friday that it does not intend to lower interest rates anytime soon.

BTC is down nearly 6% on the day and is trading at $20,341.

Capo has been closely tracking scalable blockchain platform Cardano all week, and now renew His followers say he sees ADA rising alongside Bitcoin in the short term before falling to lower levels.

“Stops are triggered at breakeven. Re-enter the trade from the low.

The risk/reward is so good that it matches the BTC analysis. “

resource: Cabo/Twitter

Cardano is currently trading at $0.43, below Capo’s diagonal support, but still within his risk parameters.

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Featured image: Shutterstock/Anton Chernigovskii

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