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.