Cryptocurrency Analyst Il Capo of Crypto Sounds Alarm Bells Amidst Bitcoin’s Recent Surge
In the volatile world of cryptocurrency, where fortunes are made and lost in the blink of an eye, one analyst has once again captured the attention of the market. Known as “Il Capo of Crypto,” a prominent trend analysis figure in the crypto space, has offered unique insights into the market following the latest surge in Bitcoin prices.
Il Capo of Crypto took to Telegram after Bitcoin hit the $38,000 mark, expressing a cautious sentiment: “Much more confirmations are needed, but there’s a good chance that the local top is in. You can call me crazy, permabear, stubborn or whatever, but in my opinion, the bearish scenario is still likely.”
Despite the prevailing bullish sentiment in the market, Il Capo remains steadfast in his belief that the bearish scenario is a plausible outcome. He cites extensive daily chart analysis, pointing out that the positive market sentiment doesn’t align with the current macroeconomic state. This perceived dissonance between market sentiment and price action forms a divergence that raises concerns for Il Capo.
“Sentiment right now is extremely bullish. Fundings, F&G index, and other indicators confirm this, but you can just check Twitter or any TG channel, and you will notice the same. This sentiment and the PA [price action] don’t correspond to the current macro state (forming a divergence), and most charts look overextended and with declining volume,” Il Capo said.
The analyst believes that the current market euphoria is artificially extending the bull run, cautioning investors to stay vigilant. Il Capo’s words come at a critical juncture, with Bitcoin having experienced a sudden correction after surpassing $37,900 and currently trading around $36,500 at the time of writing.
Il Capo suggests that, despite Bitcoin’s recent climb, the digital asset may have reached a local peak, emphasizing the need for further confirmation. He asserts that, based on his daily technical chart examinations, a bearish scenario is unfolding. However, the disconnect between market psychology and the prevailing macroeconomic conditions is what raises red flags for Il Capo.
In conclusion, the analyst boldly declares that the ongoing surge is a fabrication, urging participants in the crypto market to exercise caution. As Bitcoin continues to navigate its price fluctuations, Il Capo’s contrarian perspective provides a thought-provoking counterbalance to the prevailing optimism, reminding traders and investors that the cryptocurrency market remains unpredictable and fraught with risks.
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