Bitcoin price is yet again in the red, circling around $4,000 level. According to the experts, Bitcoin is nearing capitulation with chances of going uptrend.
Bitcoin Price Struggling around $4k
Bitcoin is currently trading at $4,057 with about 2 percent losses. The leading cryptocurrency is yet again in the red after seeing a surge. However, this downwards move could be temporary as analysts from UK-based research firm, FX Pro Insights shared,
“Many market participants have decided to take an optimistic approach and BTC’s decline to $3,500 was an important support point for the cryptocurrency… Within this context, it should be noted that speculators may soon begin to profit from this trend, which may trigger a new wave of sales… The real question is: Has the crypto market indeed reached the bottom?”
Signs of capitulation are being seen by experts as according to Chris Beauchamp, an analyst at IG, an online trading platform says Bitcoin is close to a “capitulation moment.”
According to Beauchamp, when investors lose confidence in the market and starts bailing out, the capitulation happens. Moreover, he further adds that negative momentum had driven this fall in prices.
Investors that have been willing to hold their bitcoin at $6,000, now are “much less happy” to hold it at $4k level, said Beauchamp. He further shares, “They’d rather take the money and run,” as IG sees an increase in Bitcoin short positions by “about a fifth.”
Max Boonen, the founder of market maker B2C2 said,
“The way that the fork between bitcoin Cash and bitcoin SV was handled did not put the industry in the best light. It will certainly deter many participants from entering the market. [Trading] volumes have been quite high in this move lower. That might be a sign of capitulation, rather than a mere lack of interest.”
Just recently, Rob Slumer, technical analyst at Fundstrat Global Advisors says a new upward movement could be around the corner,
“In contrast to bounces that have developed through 2018, weekly RSI [relative strength index] is now at levels not seen since BTC’s last bear market low in early 2015 and BTC is showing very early evidence of responding to its long-term uptrend after three major downside moves through 2018… Our expectation is that BTC is in the very early stages of establishing a multi-quarter bottoming process that is likely to extend well into mid-2019.”