What is capitulation? And why we aren't there yet

trading
charts
technicalanalysis

#1

So i thought i would make post on what capitulation is and why the occur in a market cycle, why i think we haven’t seen it yet and what to do when it happens.

By definition , capitulation means to surrender or give up. In financial circles, this term is used to indicate the point in time when investors have decided to give up on trying to recapture lost gains as a result of falling prices.

Capitulation is forced. It is the big money movers trying to get you to sell because you feel like you just can’t take any more loses. It makes you feel like all hope is lost and crypto is only going lower.

So what does it look like?

Bitcoin normally has pretty violent capitulation and it is normally over in a couple hours. But, you can have capitulation that is dragged out over time. I do believe that Bitcoin will have a violent capitulation because it is Bitcoin.

Why haven’t we had it yet?

Well, capitulation is obvious to see on a chart.

Look at the difference between the Volume (coins traded) between the bottoms in 2014 compared to now. The difference is HUGE. We haven’t seen that yet.

Here is a look at the candle when he hit the bottom in 2015.

As you can see we have a big spike in volume and we get a nice big wick. From the bottom of that big wick to the bottom of the body of the candle in a 20% move. That is big.

So just looking at all this tells me that we are not at the capitulation phase yet.

What is the best thing to do?

Well. If you are not like me and you are a HODLer, then just stay strong. Ride this bear market out. DO NOT let the big money movers take over your emotions and force you to sell. I believe Bitcoin will see silly numbers, so don’t be that person who sold everything because you were manipulated.


Bitcoin Price Thread
#2

Very unimpressed with this thinking. In fact, I would call it dumb! The periods are not at all similar. And just because something happened one way in a prior period does not mean it needs to repeat exactly. Bitcoin is in a very different place than the 2015 period. Back then many believed Bitcoin was over. That is decidedly not the case today. The world of trading is funny what appears predictable is often not. We have an asset where many will not sell at any price. This is not the case in any other market. Unlike 2015 few understood a pathway towards scaling. today. Further, we had not yet implemented the tools to do so Segwit. The developments in Bitcoin and Lightning Network are proceeding at a rapid pace and those “in the know” get this. I wont sell, I am looking to buy more!. How about you? Are you s stupid seller?


#3

I’m in the same boat :sailboat: as you @MaxP , been saying it for some time.

:+1:t2:


#4

I trad. I make money if the price goes up or down…

This was more for HODLers thinking about selling.

Do you think we have bottomed?

Believe it or not people were saying the same at 6k :eyes:


#5

Are you factoring in the significant price difference per coin between 2014 and 2019?


#6

Well if you look at the top in 2017 the price was a lot higher then than now and so is the volume


#7

Volume in dollars


#8

https://bitcoinaverage.com/en/bitcoin-price/btc-to-usd Using this chart from bitcoin average. It may very well be that the data from TradingView is suspect! the second crash in 2015 was an echo crash the volume was acutally smaller than during the initial decline post peak in 2013. The Trading view data may be altogether wrong.


#9

@BitcoinValu

MaxP is right on this. I would actually wager 100 icx on this? Up for this bet? Major capitulation will happen before end of September… put your money where your mouth is…

As a Christian I can not gamble…this would unfortunately mean you just giving me 100 icx…

All my best
Crash


#10

I don’t need your silly bet. I am long Bitcoin. and I don’t want any ICX.
It will be what it will be but in my opinion only 3% of people trading bitcoin have a clue about what is being developed.


#11

@BitcoinValu

What offended me Richard is you calling someone else’s view dumb. This is unnecessary. Everyone is entitled to have a viewpoint as long as it is expressed in a meaningful and thoughtful manner.

We are all here to help each other so lets do that yes?

Silly bet? Suggest a wager and I will definitely give it some thought!!

Crash


#12

I actually made this post to help people as well mate. I made it because i believe there is more to come, so people don’t panic sell when it happens