Longtime analyst and trader Peter Brandt is looking at the capitulation history of Bitcoin to determine whether the king crypto has flushed out enough weak hands to mark a bottom.
Brandt tells his 601,900 Twitter followers that massive volume expansions during a deep correction often indicate that BTC is close to resuming its uptrend.
“Implications of volume. Key bottoms in BTC have occurred with high volume panic capitulation.
That has (yet???) to happen.”
Looking at Brandt’s chart, large-volume drawdowns have marked the bottom for BTC during the February 2018, November 2018, March 2020 and May 2021 corrections.
Brandt also says that while it is possible for Bitcoin not to print a capitulation volume this time around in order to carve a bottom, he’s still looking at volume to expand in order to sustain Bitcoin’s uptrend.
Meanwhile, fellow analyst and economist Alex Krüger believes that Bitcoin’s bearish market structure indicates that the king crypto has already bottomed out.
“BTC chart looks horrible, but charts always look horrible around the bottom. This is how the mind of many trying to time the bottom works: they are now thinking ‘chart heavy, $42,000 should trade again.’
But a push >$50,000, which is very close, will have them thinking ‘bottom is in.'”
Krüger also says that Bitcoin has a “very high” chance of recapturing $50,000 in the coming days.
Bitcoin is currently trading at $48,512, up 3.79% in the last 24 hours.
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inboxFeatured Image: Shutterstock/tomertu/Andy Chipus