Analysts Predict Massive Capitulation for Bitcoin - But How Long Before Recovery?
A massive capitulation could be ahead for bitcoin (BTC) if some analysts are to be believed. But according to others, it’s just a matter of time before money printers are turned back on around the world and BTC rises in response.
Speaking in an interview with Barron’s earlier this week, Craig Erlam, Senior Market Analyst at Oanda, said that the lows that were seen in bitcoin around mid-June this year may not hold. The price lows are “really being put to the test as risk aversion sweeps through the markets once more,” Erlam said.
He added that any break of the lows from this summer could become “really damaging” for the bitcoin market. “Considering the outlook for risk appetite in the near term, it’s not looking good,” he said.
Others, including AvaTrade’s Chief Market Analyst Naeem Aslam, warned about a narrowing of bitcoin’s daily trading range, saying this means that more volatility is in the cards for the number one cryptocurrency.
“This is giving us an indication that a massive capitulation is coming,” Aslam said, adding that such a capitulation could occur at any time. “We believe that this capitulation can be any day now as bitcoin has been trading in a narrow range for a long period of time,” the AvaTrade analyst told Barron’s.
Asked how low bitcoin could potentially go in a “capitulation” scenario, Aslam offered a bleak outlook.
“The next move isn’t going to be about the [USD] 18,000 price level or [USD] 15,000 […],” he opined, while warning that a potential sell-off “could be so intense that it could easily push the prices towards the [USD] 12,000 price mark.”
Although the two market analysts were both bearish on bitcoin’s near to mid-term outlook, members of the bitcoin community offered a more positive outlook for
Read more on cryptonews.com
