Pseudonymous crypto analyst, Capo of Crypto, on Monday expressed bearish sentiment, suggesting that the surge in Bitcoin (CRYPTO: BTC) price may have been short-lived.
What Happened: Capo observed, "the fake pump seems almost over" as BTC quickly retreated back to the $27,000 level after briefly reaching a six-week high of $28,000.
Capo in a note seen by Benzinga said, "$19,000 to $20,000 should be next. Then we should see a short-term bounce around there, and then the last capitulation leg to $12,000."
According to the analyst, the orchestrated price increases often involve familiar participants, false demand, and specific price action, with the ultimate aim of trapping investors and utilizing their positions as exit liquidity.
Capo in a separate note last week, said that these movements are becoming weaker over time as their effectiveness diminishes. "Same players, same fake demand, same PA. And always with the same purpose: to trap you and use you as exit liquidity. Now with the difference that these movements are increasingly weaker because they are running out of fuel to do this."
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Why It Matters: However, not all analysts share Capo's bearish perspective.
Michael Van de Poppe, another analyst, expressed a more bullish stance on the market, referring to the current month as "Uptober."
Van de Poppe acknowledged a slight market pullback but highlighted the quick recovery of most altcoins. "The markets did make a slight pullback, some #Altcoins too and most of them have bounced back swiftly."
Good morning,
— Michaël van de Poppe (@CryptoMichNL) October 3, 2023
The markets did make a slight pullback, some #Altcoins too and most of them have bounced back swiftly.
Don't worry, sell the news event taking place.
Consolidation and continuation upwards seems most likely.
Meanwhile, Crypto Tony identified a potential short setup after the recent aggressive sell-off. "I remain long since $26,000 so will not be closing that for now, but I will be hedging short if we get a bearish retest on $27,900."
$BTC / $USD – Update
— Crypto Tony (@CryptoTony__) October 3, 2023
Could be a nice short setup here after that aggressive sell off yesterday. I remain long since $26,000 so will not be closing that for now, but i will be hedging short if we get a bearish retest on $27,900 pic.twitter.com/Ty8YK5t8W5
Price Action: At the time of writing, BTC was trading at $27,623.28, down 2.67%, according to Benzinga Pro.
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