Bullish Days Ahead for Bitcoin! But Where is Capitulation?
Updated
Why haven't we bottomed yet? Where is capitulation? I am sure many have been troubled by these questions over and over again. Well, you are in luck because today I am going to clear this cloud of confusion for you once and for all.
As I have explained to one of my commenters before, the answer to these questions are a lot simpler than you might think. First of all, we need to ask ourselves what defines a bottom. Well, a bottom is when (i) price found buyers and (ii) sellers exhausted their selling inventory. New or smart money comes in and buys everything on the table. This is basically what happened when price hit that pocket of Demand Zone between June 24-29.
You might say that $5,755 cannot be "the" bottom because capitulation has not happened for Bitcoin. History has shown us time and time again that capitulation existed in every big correction, be it in stocks, commodities or even cryptocurrencies like Bitcoin. In other words, capitulation is inescapable. And if that's the case, why hasn't it happened yet for Bitcoin?
To answer this question, we need to understand what triggers capitulation. Capitulation is triggered when people lose faith in Bitcoin, stop buying it and sell off everything they have got - much like what happened back in 2014 with the MT Gox crash. In short, there needs to be a catalyst big enough to trigger capitulation.
In the case of Bitcoin today, I simply don't see capitulation happening unless Tether collapses or we have some other equally devastating catalyst. And since price could not get any lower than Demand Zone and no Bitcoin-killing catalyst has yet to surface, the only remaining path for Bitcoin now is... well, you guessed it... UP!
That's all, my friends! Happy trading!
As I have explained to one of my commenters before, the answer to these questions are a lot simpler than you might think. First of all, we need to ask ourselves what defines a bottom. Well, a bottom is when (i) price found buyers and (ii) sellers exhausted their selling inventory. New or smart money comes in and buys everything on the table. This is basically what happened when price hit that pocket of Demand Zone between June 24-29.
You might say that $5,755 cannot be "the" bottom because capitulation has not happened for Bitcoin. History has shown us time and time again that capitulation existed in every big correction, be it in stocks, commodities or even cryptocurrencies like Bitcoin. In other words, capitulation is inescapable. And if that's the case, why hasn't it happened yet for Bitcoin?
To answer this question, we need to understand what triggers capitulation. Capitulation is triggered when people lose faith in Bitcoin, stop buying it and sell off everything they have got - much like what happened back in 2014 with the MT Gox crash. In short, there needs to be a catalyst big enough to trigger capitulation.
In the case of Bitcoin today, I simply don't see capitulation happening unless Tether collapses or we have some other equally devastating catalyst. And since price could not get any lower than Demand Zone and no Bitcoin-killing catalyst has yet to surface, the only remaining path for Bitcoin now is... well, you guessed it... UP!
That's all, my friends! Happy trading!
Note
Momentum needs a small pullback to before moving up to break the resistance between $6850 - $7150. The pullback might just barely hit our green zone if we are lucky so latecomers take note. An MACD cross and RSI uppercut in the 3-hour chart is what we want to see to confirm the uptrend so all eyes on those.Note
Signs of pullback are beginning to show. Remember, there is no risk to this trade if you play it right. If price falls below the green box, don't trade. If it bounces up from green box, we can expect our target to be hit. Keep watch on the MACD and RSI as described earlier. Good luck!Note
My friends, Bitcoin is not the only one going up. The Ethereum (ETH) moon train is departing soon. Read my updated analysis on Ethereum and give my charts a LIKE before leaving. Good luck!
Note
Rocket blast off! Enjoy your profits, my friends.
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