Could Crypto Form The Biggest Bull Trap Ever?

It’s been revealed by more analysts that crypto could be forming the biggest bull trap ever. Check out the latest reports about all this below.

The trader who nailed last year’s epic Bitcoin (BTC) meltdown has just issued a warning. This is saying the current rally is not going to end well for crypto bulls.

Pseudonymous analyst Capo said that he thinks that real and organic demand is not responsible for the strength in the crypto markets.

“I’ve been checking charts all this time, avoiding noise from Twitter. The way the upward movement is happening, the way high timeframe resistances are being tested… It clearly looks manipulated, no real demand. Once again, the biggest bull trap I’ve ever seen. But they won’t trap me.”

It’s really 9important to note that stablecoins were being minted as Bitcoin rallied from $18,000 to suggest real demand, Capo doubled down on his bearish stance.

“The longer an artificial pump, the bigger and more aggressive the drop will be.”

Last week, Capo said that Bitcoin was in the process of testing major resistance around $21,000.

“High timeframe.

BTC is still testing major resistance. Weekly close will be key, but there’s no bullish confirmation yet.”

Crypto markets have taken a brief reprieve after adding more than 30% to their collective capitalization since the start of the year.

Bitcoin (BTC) rose to a peak of $23,360 on Saturday — its highest point in more than five months. BTC sat at $22,900 as of 7 am, ET.

NYDIG reported an influx of liquidations on short bitcoin positions over the 10 days leading up to Friday.

“While the data shows these liquidations occurred during bitcoin’s biggest price moves, our conclusion is that while liquidations likely played a factor in the rally, they are unlikely to account for all of the recent price action,” the firm said in its newsletter. Check out the previous article in order to learn more details.