Bitcoin price and the rest of the crypto market fell today in a shakeout of epic proportions. The highly speculative asset class fell as much as 50% from its highs, with some falling so sharply today due to the extreme volatility of the market alone.
The highest cryptocurrency by market cap is now up more than $ 8,000 from today’s low. However, something is missing from the asset’s price list, suggesting that further downward moves may occur. Is the Bitcoin bull run doomed for the time being?
Bitcoin Bull Market hangs in the balance after ruthless collapse
Bitcoin’s bull run was widely publicized, made headlines around the world, and changed the minds of many. Celebs, CEOs, and athletes are into crypto now, but booming demand didn’t fend off a massive sell-off this week.
Related reading | Bear phase fractal warns of pain, Bitcoin Bull Market remains unbroken
A change in sentiment regarding Bitcoin and related energy issues has turned into a full-blown bearish trend. There has also now been a 50% drop in shaking bulls to the bone and out of their long-term positions.
The top crypto asset is now surging and has rebounded from the low by as much as $ 10,000. Those fears in the market could suggest that the recent downtrend wave has already hit a low, but one ingredient is missing, according to a high-precision cryptoanalyst.
Where is the breakout capitulation volume? | Source: BTCUSD on TradingView.com
The lack of surrender volume could mean further disadvantages for Crypto
There was a bit of FUD, a dash of devastation, and a few drops of liquidation in the crypto market today. However, there is still one ingredient missing that suggests the sell-off is perfectly closed: the surrender volume.
Notice in the table above the massive volume of the Black Thursday candle – this is what surrender looks like. There were even a decent number of coins changing hands in January 2021, but the overall volume was a bit miserable by comparison.
Related reading | Bitcoin is losing crucial support that was never interrupted during the last bull run
Even with today’s mass crypto liquidations of billions of dollars lost, there is a clear lack of trading volume across exchanges.
Holders may not yet be convinced that the uptrend is over or that Bitcoin will continue to fall, resulting in fewer coins to sell. What could get them on sale is yet another print that is much less, resulting in an increase in volume that would essentially act as the icing on the cake.
The shock of seeing Bitcoin at much lower prices again could be the surrender event and the switch of hands from weak to diamonds that pushes the cryptocurrency higher in due course.
Featured image from iStockPhoto, Charts from TradingView.com