Last 8 days have been severe for Bitcoin and all other cryptocurrencies as billions have been eroded off the total market cap within days.
Many people who started investing in cryptocurrency in 2017 do not know about the history of Bitcoin. A 40% drop in a day is very normal which people who entered in 2017 need to realize. 2017 was a healthy year for the newbies who thought of Bitcoin as an “always increasing” cryptocurrency.
Has Bitcoin Capitulation ended?
In a market cycle, the end of capitulation signals the end of a bear trend. Capitulation is followed by Despair which marks the end of the bear trend and the start of the next bull run.
BTC/USD Weekly Chart
Taking a look at Bitcoin USD weekly chart, the volume for the last week is drastic and is comparable from Bitcoin’s first move from $20000 to $6000. In the last week, Bitcoin has been dumped from $6500 to $3500 which is roughly 46%. We might be in the most savage market environment for Bitcoin in years.
Next Support Levels: $2500 to $3000 range, $1300
Credits: Crypto Kirby (Youtube)
BTC/USD 4 Hour Chart
Credits: Crypto Kirby (Youtube)
The 4-hour chart is showing a series of bear flags. We saw a reaction rally on Monday, which is a normal part of every bear market. In the weekly chart, the old support has become the new resistance at $4100 – $4400 range. The market is currently retesting the bottom at $3550 for the third time. The 4-hour chart signals a continuation of the bearish move for BTCUSD with a double top rejection at $4200.
Capitulation might end if we see similar volumes of the weekly charts and BTC might reach in the range of $2500 – $3000 during the process.
This article is only the viewpoints of the author and the author is not a financial advisor. You should do your own due diligence before taking any position in Bitcoin or any Cryptocurrency market.
