Bitcoin price along with the rest of the crypto market plummeted today in a shakeout of epic proportions. The highly speculative asset class dropped by as much as 50% from highs, some plunging that much today alone due to the market extreme volatility.
The top cryptocurrency by market cap is now up more than $8,000 from today’s low, however, there’s something missing from the asset’s price chart that suggests that more downside could be coming. Is the Bitcoin bull run doomed for the time being?
Bitcoin Bull Market Hangs In The Balance After Ruthless Collapse
Bitcoin’s bull run has been widely publicized, making headlines around the world and changing the minds of many. Celebs, CEOs, athletes are all now into crypto, but the booming demand hasn’t been able to ward off a massive selloff this week.
Related Reading | Bear Phase Fractal Warns Of Pain, Bitcoin Bull Market To Remain Unbroken
A change in sentiment around Bitcoin and related energy concerns has spiraled into full blown bearish trend. There’s also now been a 50% drop to shake bulls to the bones, and out of their long-term positions.
The top crypto asset is now reeling, and has rebounded by as much as $10,000 from the low. Such fear in the market could suggest a low is already in for the recent wave of downtrend, but there’s a missing ingredient according to one highly accurate crypto analyst.
Where is the breakout capitulation volume? | Source: BTCUSD on TradingView.com
Missing “Capitulation” Volume Could Suggest More Downside For Crypto
Today in the crypto market, there was a little bit of FUD, a dash of devastation, and a few drops of liquidations. But there’s still a missing ingredient that would suggested the selloff is finished to perfection: capitulation volume.
Take note in the chart above the massive volume on the Black Thursday candle – that’s what capitulation looks like. There were even a decent amount of coins changing hands in January 2021, but overall volume has been somewhat abysmal by comparison.
Related Reading | Bitcoin Loses Crucial Support Never Broken During Last Bull Run
Even with the mass liquidations across crypto today to the tune of billions of dollars lost, there’s a distinct lack of trading volume across exchanges.
Holders might not be convinced yet that the uptrend is over, or that Bitcoin will fall any lower, resulting in fewer coins to sell. What could get them to sell is another push much lower, causing that spike in volume that would essentially act as the icing on the cake.
The shock of seeing Bitcoin back at much lower prices, could be the capitulation event and the change of hands from weak to diamonds that propels the cryptocurrency higher in due time.
Featured image from iStockPhoto, Charts from TradingView.com
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Author: Tony Spilotro