Capitulation
What occurred on Friday last week is unmistakably a capitulation event as fear took over as the primary investor emotion. The question ahead, is whether it was sufficient to put THE bottom in place.
G’day Folks,
Last week’s sell-off was quite remarkable to watch.
As expected, the move sliced right through the air-pocket down to $70k, but then it just kept going lower, accelerating into a final wick around $60k.
Just like there are many tops in bull markets, there are also many capitulation events through bear markets. However, some are more significant than others, and result in a macro change in investor mindset.
In today’s post, I will explore whether we can consider this sell-off to be a major capitulation event, and whether it was large enough to put THE bottom into this bear.
We’re looking to see whether this move has instilled enough fear in investors, such that the tourists have all been shaken out, and only the high conviction HODLers remain.
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