The recent round of FUD generated by the hawkish remarks of the Federal Reserve has hit the cryptocurrency market with a massive correction. Bitcoin is no exception to the price dip that has affected altcoins across the board. After dipping to $41K at one point, Bitcoin prices were able to recover swiftly.
At press time, Bitcoin is trading for $43k. The bullish prediction for Bitcoin is also confirmed by a crypto market analyst Capo. Capo recently posted on Twitter that the flagship crypto is in the right position to undergo a price retracement based on the funding rates statistics.
Capo shared several data projections and charts to prove his points. He pointed out that for Bitcoin, the main scenario is happening currently. He further explained that the funding rate for the flagship cryptocurrency is moving in the opposite direction that postulates a bearish development theory.
However, he added that it is highly likely that the short position holders will need to dissolve their positions, invoking a short squeeze. Capo claimed that the top coin is placed in the position to generate a strong price surge and added that during the negative funding rates, a V-shape recovery or a steep incline is possible for Bitcoin price movement.
Capo claimed that the altcoin market is far from the end of the bullish cycle. He also commented at one point that he is all-in-altcoins this season. Furthermore, he posted a chart of OTHERS indictor by TradingView. ‘OTHERS’ is an indicator that accounts for the price movement of 125 altcoins excluding BTC.
He pointed out that on the OTHERS indicator, 125 top altcoins are performing upwards within a parabolic trajectory. Capo was confident enough to predict that the altcoin market will grow up to a $3 trillion market cap by next year. He also advised investors to keep a close eye on the altcoin market as they recover from the recent market correction.