Bitcoin (BTC) is approaching an exciting stage for hodlers and enthusiasts because after testing the 5k zone, there don’t seem to be any immediate signs of a drop in price. This stability pattern after the downtrend of 2018 has led many analysts to conclude that the bearish trend is over, and Adamant Capital has issued a report providing sufficient arguments to support this idea.
The team fund owned by the well-known analyst and CT influencer Tuur Demeester explained that over time, BTC has gone through a cycle of bullish and bearish euphoria, among which several identifiable stages make it possible to calculate when a trend shift is likely to happen. According to the report, a few months ago, the crypto market began to show signs of capitulation – which is the stage prior to the beginning of the bullish period.
Most investors didn’t want to hear about the possibility of a strong decline or a year-long bear market, as illustrated by the backlash generated by sober analyses. At the time, we thought there was still too much hope and fear in the market to call a bottom … In the depth of a bear market people don’t feel hope and fear. Capitulation is about disgust, indifference and a loss of hope
The market experienced this stage just when BTC broke the 6k support and started a slide towards the 3k. The Adamant Capital team comments they received so many negative responses they were able to conclude that fear and hope turned into disgust and apathy, giving a clear sign of capitulation in the market.
There is Light at The End of The Tunnel for BTC hodlers
However, this decline appears to be natural and cyclical. On previous occasions very similar scenarios occurred. Adamant Capital explains that after capitulation comes a period of hope, which in turn precedes a period of optimism. They explain that the recent rise in BTC prices put an end to capitulation and started the period of optimism in which there is a strong accumulation of token by powerful investors.
The recent price rally from $4000 to over $5000 markedly improved HODLer’s Unrealized P&L, improving our reported sentiment value from capitulation to hope
Adamant Capital believes that hodlers are gradually returning to cryptomarkets, which is good news for investors as the number of hodlers increases, the value of tokens in circulation tends to increase.