Bitcoin (BTC) Has Not Capitulated Yet, Here’s What It Means For The Price

Bitcoin (BTC) has not capitulated yet. For those that are wondering what this means for the price, it would be a good idea to look at what happened the last time BTC/USD capitulated. The daily chart for BTC/USD shows how the price has so beautifully been following the same cycle as last time and is currently in the third phase. It is about to enter the fourth phase which is the capitulation phase but this time, we are not looking at a simple decline followed by an uptrend. We are looking at a major correction after the double top that the two peaks of the two bullish cycles has formed. 

This means that not only is BTC/USD about to capitulate, it is expected to capitulate much more aggressively than before. The previous capitulation saw a break below the key $6k support. This capitulation is likely to see a break below the key $3k level. At the moment, BTC/USD is expected to decline down to the 38.2% fib level which corresponds to a price of $5,502. If the price declines below that level, the 50% fib level is not likely to stop it from declining down to the 61.8%. Doing that, it would be taking out the December, 2018 lows and BTC/USD would find support around the $2,511 level. This would be a point where we could see some relief but it would not be surprising to see BTC/USD fall even further below that level.

Most investors in this market make the mistake of looking just at the BTC/USD chart or worse the altcoin charts. This is not what the professionals are looking at. To them, it all comes down to larger markets like stock market indices, forex pair, treasury bonds and the like. If we look at the daily chart for EUR/USD, we can see that it declined below the 200 moving average but ended up closing the day above it. However, it still closed the day below the 200-exponential moving average which tells me that we could eventually see a decline below the 200-day moving average in the near future. 

Bitcoin (BTC) and the cryptocurrency market does not matter when WWIII is top trending on Twitter and investors are more uncertain than they have been in a very long time. There are a lot of people on Twitter and other social media forums making a lot of noise about Bitcoin (BTC) and other cryptocurrencies but most of them are investing with very little amounts that are of no significance. The real players in this market do not care about blockchain or Bitcoin (BTC) or cryptocurrencies; they only care about money. To them, the outlook of Bitcoin (BTC) remains uncertain in light of the current political and economic developments. They also know better how “decentralized” Bitcoin (BTC) really is which is why they would be the first to jump ship soon as they have the greenlight from these major indicators which I expect will be very soon. Like always, most retail traders would be left holding the bags as Bitcoin (BTC) and the rest of the market nosedives.