By Scott Galbraith
The Top Crypto Guru who precisely called Bitcoin’s breakdown recently says rallies are in sight for both Bitcoin (BTC) and Ethereum (ETH).
The pseudonymous crypto strategist widely known in the crypto space as Capo tells his nearly 560,000 Twitter followers that “now is the best time” for Bitcoin to start rallying. He added that Crypto Bears are also responsible for fueling the rally.
“Price action and heatmaps look bullish. As a result, several short squeezes are open. However, it is always best that you don’t short support.”
A short squeeze happens when traders receive loan units of an asset at a specific price with the hope of selling them at a lower price and making some profits.
However, they are compelled to repurchase such assets because the market has moved against them.
Deeper Analysis
Data from on-chain analytics company, Coinglass shows that dealers have taken $3.63 billion in short positions within the last day as of this writing. The latest Coinmarketcap data shows that BTC trades at $19,316, down 0.86% over the previous 24 hours.
Capo also shared his analysis of the second leading digital asset, Ethereum. The crypto analyst opined that ETH is preparing for a new bullish run once it stabilizes above the $1,400 level, a price range Capo termed an “unexploited liquidity.”
Often, traders seek these areas of high liquidity because they presume that institutional traders and investors will push the price toward that high liquidity area. As a result, there are usually buyers or sellers within that region.
Ethereum currently exchanges hands at $1,338, up by 0.62% in the last day. Speaking of XRP, Capo cautions that the 6th biggest crypto by market cap is heading for a massive drop toward the $0.17 level.
As of this writing, XRP is down by 1.42% over the past 24 hours and trades at $0.454, according to the latest Coinmarketcap.