If you’ve been trading Bitcoin or been following the crypto news cycle, you’ve likely heard of the word “capitulation.” Time and time again, this word, defined as “the action of surrendering or ceasing to resist an opponent or demand,” has been used in the context of the cryptocurrency market, often to describe a violent downturn.
Just think back to the headlines seen in 2018, which mentioned the rapid Bitcoin price crash from $6,000 to $3,000 as an act of “capitulation” by crypto bulls. In other words, “capitulation” is reserved only to describe an extremely strong bout of downward price action.
Thus, the fact that a cryptocurrency trader claims that capitulation is imminent for the BTC price should have some worried, or at least a tad nervous.
Bitcoin Ready for Secondary Capitulation?
Bitcoin hasn’t done too hot in the past 48 hours. The leading cryptocurrency is down some 7% in the past 48 hours, tumbling from $7,150 on Sunday to $6,600 as of the time of writing this.
While this move obviously favored bears, it wasn’t a clear capitulation event, with the sell-off taking place over multiple days, rather than one big flash-in-the-pan spike downward, then a recovery.
Though, two analysts have asserted that this latest move to the downside has validated their theories that a full-on capitulation in the Bitcoin market is imminent.
Trader “FizeekMoney” recently noted that the daily on-balance volume chart for the BTC-to-USDT chart on Binance is “screaming [that] capitulation is on the horizon” for Bitcoin. Backing his quip, he looked to the below chart, which shows that the cryptocurrency has lost a support line, implying that bears are gaining control.
Bitcoin trader Nick Core echoed this, remarking that if the on-balance volume, an indicator that relates price action to exchange volume, closes under 1.405 million (and it did), “it signals disaster” for the short-term to maybe medium-term price outlook for BTC.