The pain is not yet over for bitcoin & their brethren, with an analyst predicting about the final price of capitulation dumping to be low as $12,500. Here the fact is that, this is teetering on psychological price level of $20,000. Getting this dropped with almost 1.3% on day. This also has remained in the channel which is range-bound for last 10 days, but can even be heading to the south fast, as per the analyst. However, Technical strategist said that there is also some great chance for the final event of capitulation prior to market bottoms.
Many short-term points for technical are above-average possibility of the final decline with the ‘washout’-style prior of the bottoms. Bitcoin even has room to drop at low level low of $12,500 to $13,000, this is where it is also expected to be a wonderful place for the buyers of intermediate-term for adding to longs.
Earlier capitulations cycle
With the slump to such prices will be 82% of the correction from the all-time high level. Bitcoin is now down with almost 71% from the highest level. In last market cycle, the prices of BTC hit the high range of $20,000 in the month of Dec 2017 prior to crashing down $3,200 in following year. Such kind of the retreat was quite similar to 82% and hence if history rhymes so it can reasonably happen over the time again. It is even the final capitulation in Nov 2018 with dump of further of 50% from the prices of BTC.
The cycle prior to this saw Bitcoin prices to simply dump at the similar level of 84% in2015 bear market which followed the highest level of 2014 peak.
The prices of Bitcoin hit the low of almost $17,760 on 19th June prior to recovering to highest level of $21,600. Here, bears are yet in the complete control of the markets. Continue pressure of selling from miners will also add to downsides.