The crypto market is extremely optimistic, but this is dangerous

The infamous (and often negative) analyst Capo says that market sentiment is currently “extremely optimistic” and that is a danger in most cases. In times like these you see that the market can often turn around.

Why? When everyone is extremely optimistic, usually everyone has already invested their capital to get started.

Should we sell?

If Capo gets what he wants, this could be a good time to sell. He had already predicted a drop in Bitcoin’s price to $12,000, but believes things could get much worse for some altcoins.

The analyst writes that more confirmation is needed, but that there is a good chance the market is currently hovering around a local high.

What does that mean? This means we could see big declines from here, Capo said. “Most charts appear congested and volumes are declining,” says the ominous analyst.

Moreover, according to him, current sentiment and price developments do not coincide with important developments.

There’s something wrong…

According to Capo, the current upward price movement that we have been observing for weeks does not correspond to the macroeconomic situation. Starting in March 2022, the US Federal Reserve pursued an aggressive interest rate campaign to combat inflation.

They have now managed to reduce inflation, but according to many (and Capo is one of them), the real blow to the economy is yet to come.

If we enter a recession soon, it could dump a lot of misery on the market. For this reason, it is dangerous to devote yourself completely to Polish now.

But fortunately, with the Bitcoin ETF in sight in the US, the upcoming Bitcoin Halving and possibly the first interest rate cut in May 2024, there are also many positives for the crypto market.