Bitcoin price Volatility has stabilized to a decent degree in the last 2 months. The difference between the high and low is about 2.58% in the last 2 months. Many bullish signals for a bull run seems to be around the corner. But seems that people are less confident and fear a further price drop. This sentiment has been confirmed by a poll conducted by om Lee (Head of research at Fundstrat Global) were more than 50% of the 9000 participants think that the price didn’t bottom yet.
A Jeniper research report has been published yesterday on Bloomberg with title Crypto Industry on ‘Brink of an Implosion,’ Researcher Says. The report says that Bitcoin price will go down by 45% and the market is near an implosion. The Forecast is based on the fact that bitcoin price did not rally, despite favorable events happening on a global scale like US-China trade war and Brexit issues.
Spreading fear at this point with such a weak research is similar to those who were calling for $50,000 and $100,000 when the price hit $20,000 in December 2017. For the newcomers into crypto, December 2017 was an ATH for Bitcoin, when the price was driven by the euphoria of the Futures opening, and the institutional money that will flood the crypto. At this point, many people got FOMO and bought the top. Futures resulted to be a bad thing for bitcoin, creating artificial supply while trading, not real bitcoins.
Now, those who bought Bitcoin at that point are more than %70 in losses. At the time of the ATH, most of the media and researcher were calling for Moon with numbers like 50k, 100k, etc. But the market needs to correct after the December euphoria and in February 2018 there was a price capitulation at $5800 which is the lowest price for 2018. After that price tends to stabilize between $6000 and $ 8000.
Price Capitulation Before Rally To Moon
Many researchers have been waiting for the Bitcoin price capitulation. Actually, Bitcoin price capitulated in February 2018 and later it was just tending to stabilize. Maybe researchers have been looking at the wrong place. When Bitcoin price capitulated in February, Ethereum, the second coin by market cap was still at $700 but in August 2018 Ethereum price hit $170. This was the Ethereum price capitulation which might mean that the Bull run in near the corner.
Do you think the price already bottomed or we did not see yet the bottom? Feel free to post your comments below.