Market Analyst Of IG.com Suggests Bitcoin Might Be Reaching A Capitulation Moment
Bitcoin has lost an important part of its value during this year, and it has plummetted even further during the last weeks. This is why the crypto community is asking when virtual currencies will reach the bottom of this market.
Chris Beauchamp, an analyst at the IG trading platform, said that Bitcoin (BTC) is going to reach a ‘capitulation’ soon. This will happen once a critical mass of investors begins bailing out of the market. This would create a cycle of sell-offs and price falls.
During a conversation with the Financial Times, Beauchamp explained that while many investors were comfortable holding their Bitcoins around $6,000, they are not happy about doing the same around $4,000 or below. In this case, he says that such investors would not remain in the market, they would just sell their funds. According to him, IG experienced a 20 percent increase in bitcoin short positions.
The CEO of Genesis Trading, Michael Moro, said that Bitcoin could reach $3,000. At the same time, this happened due to a selloff among Bitcoin holders that bought BTC early in 2017 or before. He also took into account the Bitcoin Cash (BCH) network upgrade on November 15.
Anthony Pompliano, Morgan Creek Capital founder, said that he expects a Bitcoin bottoming close to 85 percent from its all-time high of $20,000 in December 2017. However, Pompliano is bullish about the future of the space and Bitcoin. He mentioned that Bitcoin will make a strong recovery after this bottom.
This shows that analysts believe that Bitcoin could soon be bottoming and starting a new bull market in the near future.
The crypto analysis Peterr Brandt, however, has a different point of view about the current situation of the market. He said that investors that think in the long term are using this time to buy and purchase more Bitcoin, not going out. Short-term investors are those that are currently selling.
Currently, Bitcoin is being traded around $4,000 dollars and it has a market capitalization of $69.92 billion. At the beginning of November, Bitcoin was traded around $6,500. Bitcoin could be losing 25% of its price form where we are if it falls down to $3,000 as many analysts suggest.