‘Capitulation’ is Bitcoin (BTC) investors word of the year.
Bitcoin rose to $20,000 and fell to $3,700 the market is open at the time of this writing leaves players wondering if Y 2019 is a Year for Bulls.
Bitcoin is a new, low volume asset class trying to gain traction, as the fundamentals play exaggerated role with price action, and technical analysis is gradually becoming more reliable.
Capitulation refers to a time when participants/holders of an asset are indefinitely committed to holding and panic sellers have cut their losses, forming a true bottom in the market.
So, using technical analysis, I am looking to find the support for the Bear run.
To find true support, it is important to understand the long-term movement from $1,000 to $20,000.
Y 2017 showed this meteoric price increase and prior to this Bull run, the price was gradually increasing from $700 – 1,000.
As you can see in the chart below, the full Y 2017 was a continual, irrational Bull run filled with hype and over-valued ICO’s, with strong support at $1,000.
The volume during Y 2017 was unprecedented, which means that lots of buyers and new investors were buying in all the way up to $20,000 per Bitcoin.
Once Bitcoin broke $2,000 there was virtually no resistance.
Now, let’s look at the other side, Y 2018, the end of the Bull’s run.
Throughout Y 2018, the market has yet to find its support.
Each day news outlets and influencers calling bottoms, but so far there is none in place.
Taking a 3-month view shows signs that a bottom may be approaching.