Capo Warns Traders About Potential Bitcoin Price Drop

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A popular analyst who accurately predicted the 2022 cryptocurrency crash warns that Bitcoin (BTC) could reach a local peak at any moment. Operating under the pseudonym Capo, he cautioned his 102,828 subscribers on the Telegram platform that Bitcoin might suddenly pull back, potentially losing its recent substantial gains.

Analyst’s Market Perspective

Capo expressed that a correction in the current market is likely for several reasons. He noted that the upcoming inauguration of the crypto-friendly presidential candidate Donald Trump on January 20 is one of the main reasons for this possibility.

He pointed out the excessive optimism in market sentiment and highlighted that retail investors are flocking to meme coins. Capo emphasized that the meme coin rally feels overly extended and unhealthy. He also mentioned that the U.S. government’s possession of 208,109 BTC could exert downward pressure on prices.

Impact of the U.S. Government

Capo stated, “The U.S. government holds 208,109 BTC and may start selling these Bitcoins. This has the potential to lower BTC prices.”

He further indicated that the strengthening dollar has led to a divergence in BTC’s rise. Additionally, many altcoins have been underperforming, testing significant resistance levels, which could negatively impact the overall market.

Currently, Bitcoin trades at around $98,994. Capo provided persuasive statements about the market potentially retracting at any moment.

Lastly, he advised that traders seeking more information on the overall market conditions should proceed with caution. Staying updated on developments regarding Bitcoin and other digital assets is crucial for making sound decisions.

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