In the world of cryptocurrencies, one name stands out: Capo, a renowned and pseudonymous crypto trader, who holds a significant following of 66,325 subscribers on Telegram. Recently, he made a significant disclosure to his loyal audience – his largest short position is on Binance Coin (BNB).
Analyzing the high and low time frame charts, Capo has identified a highly bearish price action (PA) for BNB. His instincts suggest that negative news could emerge soon; it’s only a matter of time before the bearish trend plays out. This short position marks a significant move for the trader, indicating his strong belief in BNB’s downward trajectory.
Delving deeper into the analysis, Capo utilizes the Elliot Wave theory, which suggests that BNB has broken out of its upward channel and entered a downward trend. Based on this, he has set his first BNB price target to be $125, reflecting a considerable 48% decline from its current value of $241 at the time of writing.
While BNB commands most of Capo’s attention, he also has his eyes on the Ethereum (ETH) competitor, Solana (SOL). After witnessing SOL’s inability to maintain support at $30, Capo predicts that it might descend further to $25.36. His mid-term short position in SOL remains unchanged, with an entry price set at $25.36.
As the crypto world’s focus shifts, Capo has not overlooked the king of cryptocurrencies, Bitcoin (BTC). He points out that a Wyckoff distribution schematic is playing out for BTC, indicating the formation of a sign of weakness (SOW), hinting at an imminent bearish breakout.
The Wyckoff method, a popular technical analysis tool, helps identify whether large investors are accumulating or selling an asset. In this scenario, it seems the accumulation phase is over, signaling potential price declines for Bitcoin.
As of the time of writing, Bitcoin is trading at $30,027, experiencing a slight dip of 1.1% over the last seven days.
Capo’s insights offer valuable perspectives on the current state of the digital asset markets, providing his followers with critical information to make informed decisions in these uncertain times.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.