Top crypto strategist and market analyst Capo says the bottom is in for bitcoin, telling traders to buy the current price dip.
In a series of tweets made Friday, the popular crypto analyst claimed the bottom was likely in for BTC while noting that traders who went long on bitcoin got “rekt” in the recent correction. Capo went on to explain the drop in long positions would help reset funding rates while also trapping short positions hoping bitcoin had yet to reach a bottom.
Capo said both bitcoin and ethereum were forming a hidden “bullish divergence” on their respective relative strength index (RSI) charts when examined in high timeframes. The trader called the divergence an indication the previous price trend could continue.
He warned the position would be invalidated if bitcoin fell below $33k and would be confirmed with a close above $57k.
Capo also pointed to the bitcoin fear and greed index, which plummeted from a high of 94 to 55 with the recent price correction. He noted that bitcoin’s heatmaps appeared bullish, indicating strong demand in the context of limited supply.