A much-followed crypto trader announces which altcoin he has the shortest position on as digital asset markets pause.
Pseudonymous trader and crypto bear Capo tells his 66,325 Telegram subscribers which is his largest short position with Binance Coin (BNB).
“HTF (high time frame) and LTF (low time frame) charts. Very bearish PA (price action). Expect some bad news soon, it’s just a matter of time. This is my largest short position.”
Looking at his chart, the trader uses the Elliot Wave theory to indicate that BNB has broken out of an uptrend channel and entered a downtrend.
The trader sets his initial BNB price target down to $125, down more than 48% from its current value of $241 at the time of writing.
Also on Capo’s radar is Ethereum (ETH) rival Solana (SOL). He says that after Solana couldn’t hold $30 anymore, SOL will probably go to $25.36.
“SOL: Adding more to my medium-term short position [with an entry price of $25.36]. No changes.”
Solana is currently trading at $26.35, up 3.4% in the last 24 hours.
Finally, Capo says there is a Wyckoff distribution scheme in play for Bitcoin (BTC) that shows the formation of a sign of weakness (SOW), signaling an impending breakout to the downside.
“Played out so far. SOW + expansion should be next.”
The Wyckoff method is a type of technical analysis that aims to determine whether large money investors are accumulating or selling an asset. An accumulation pattern marks a period when institutional investors control the price of an asset in an effort to buy at discounted prices.
Bitcoin is trading at $30,027 at the time of writing, down 1.1% over the past seven days.
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