Crypto bear Capo has revealed his biggest altcoin short position as the digital asset markets take a temporary pause. With 66,325 subscribers on Telegram, Capo shared that his largest short position is on Binance Coin (BNB). According to his analysis using the Elliot Wave theory, BNB has broken out of an upward channel and entered a downward trend. Capo has set his initial price target for BNB at $125, which represents a significant 48% decline from its current value of $241.
Capo is also keeping an eye on Solana (SOL), a rival to Ethereum. After failing to hold the $30 support level, Capo predicts that SOL will likely head down to $25.36. Currently trading at $26.35, SOL has registered a 3.4% increase in the past 24 hours.
In addition to BNB and SOL, Capo has shared his insights on Bitcoin (BTC). He suggests that a Wyckoff distribution schematic is unfolding for BTC, indicating the formation of a sign of weakness (SOW). This suggests an imminent break to the downside. The Wyckoff method, which analyzes whether institutional investors are accumulating or selling an asset, highlights a period where institutional investors control an asset’s price to buy at discounted prices.
As of now, Bitcoin is trading at $30,027, representing a 1.1% decline over the past seven days. With Capo’s analysis, it appears that the crypto markets may experience further downward pressure in the near term. It is important for investors to carefully evaluate their positions and consider the potential risks associated with shorting altcoins in the current market conditions.
However, it is worth noting that the cryptocurrency market is highly volatile and subject to rapid changes. Prices can fluctuate dramatically, leading to unexpected outcomes. It is always advisable to conduct thorough research and consult with financial experts before making any investment decisions.
Overall, Capo’s disclosure of his biggest altcoin short position and insights into the market trends provide valuable information for crypto traders and investors. By staying informed and looking out for potential warning signs, individuals can better navigate the ever-changing world of cryptocurrencies and make informed investment choices.