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Bitcoin Capitulating after 2 months?

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A market analysis has suggested that Bitcoin is in a classic state of capitulation sparking a series of “rare events” according to Capriole’s Charles Edwards. 

Bitcoin is indicating to the market that it is capitulating, possibly marking the transition to bullish from a hard-fought bearish trend that headed off in May. In a Twitter thread, Edwards, CEO of Capriole explained what he dubbed the “12 Bitcoin Capitulations.”

The BTC price has been recovering from some of its most severe lows, hovering close to bear market support, and triggering much discussion over the future course of the worlds largest cryptocurrency. While some think a return to levels as low as June’s $17,600, other argue that the “bear market relief rally could shoot BTC/USD up to $40,000.

Edwards’ take on the evidence suggests that Bitcoin has been silently capitulating under a heap of bearish market events.

“The raw count of evidence for major Bitcoin capitulation today is insane,” he wrote.

“Each occurrence alone is a rare event and adds to the probability that forward risk-returns are skewed positively.”

Edwards also began to suggest that evidence includes macro triggers, like the poor performance of US  equities and relatively stagnant supply growth of M2 money. 

“We have just seen the _worst_ inflation-adjusted downdraws in traditional markets in the last 8 generations. Enough said,” he said. 

Edwards is also of the belief that the bankruptcy events of the current year support the notion of Bitcoins capitulation, noting a few key events like Celsius, and Voyager, as well as the liquidation of a majority of Tesla’s BTC holdings. 

“Take a look at the level of institutional capitulation here,” he commented, adding “Leverage is one of the best indicators for relative over- and under-valuation in Bitcoin, and many major leveraged crypto institutions have been wiped out.”

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