‘Massive Capitulation’ Coming – Here’s How Low ‘Intensive’ Selling Pressure Could Send Bitcoin Price
Bitcoin has rebounded from a price crash this week as the market braces for another earthquake from the Federal Reserve.
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Bitcoin price is still struggling to climb back above $20,000 per bitcoin – a psychological level it first crossed in 2017 before entering a multi-year bear market – with some caveats, radical crypto changes could fundamentally change the market.
Now, an analyst has warned that the bitcoin price could fall as low as $12,000 as intense selling causes “massive capitulation.”
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Bitcoin price has struggled as the Federal Reserve continues to tighten monetary policy.
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Aslam pointed to bitcoin’s recent close correlation with the stock market, particularly technology companies, as the first of two weaknesses that could potentially drag on bitcoin’s price. The other is the strength of the US dollar, which has hit multi-decade highs against both the euro and British pound in recent weeks.
“These two factors indicate that bulls are holding ground very well and they have not allowed the bitcoin price to be beaten,” Aslam said. “On the flip side, if there is a capitulation to the downside, the next move will not be about the $18,000 or $15,000 price level; the selling could be so intense that it could easily push prices towards the $12,000 Price Mark.”
Earlier this week, an independent bitcoin and crypto researcher warned that a bitcoin price crash could follow ethereum’s groundbreaking “pooling” transition to energy-efficient proof-of-stake — on top of a potential “black swan” event in September.
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The Bitcoin price has risen many thousands of percent since 2017, but remains highly volatile.
Meanwhile, others are even more gloomy in their medium-term bitcoin price outlook.
“Given past price and time dependencies, in November or December, the price of bitcoin could still be about 50% lower than it is today and could reach the $10,000 level,” Daniel Kostecki, senior market analyst at Conotoxia, said via email . Kostecki pointed to previous bitcoin price cycles that saw bitcoin lose 90% of its value before rebounding.
