Tag Archives: capitulation

Cryptocurrency: Waiting for Capitulation

Total Market Capitalization peaked around 115B on June 24, 2017 after a very steep ascent. It is now dropping  just as precipitously, currently down almost 50% off the high. Not only are we witnessing some real pain but the bottom at this point is still unknown. Can we fall 75% off the high, 80%? Worse case scenario, yes we could.

These are some contributing factors:

1. Bitcoin upgrade is a big unknown; if it splits, I think the market will react negatively. If it succeeds beautifully however, everyone breathes a big sigh of relief and the bull market continues.

2. ICOs are cashing in. Even established coins need to lock is fiat money to continue operations.

3. Ethereum is waiting for Metropolis. We need good news from somewhere.

When to know the bottom is in?

Capitulation is a good indicator.  Capitulation means to surrender, to throw your hands up and say, “I can’t take this anymore.” The pain of losing profit (or losing capital) becomes unbearable and the fearful will sell into the collapse. There will be a point where they will do it “en masse” and the volume will be great, that’s capitulation. My guess it happens around August 1st when the bitcoin fracas comes to a head.

Have some dollars ready, it will be a great buying opportunity.