What is crypto market capitulation and its significance
Cryptocurrency market capitulation revolves around investors' fears of further losses in a seemingly never-ending downward spiral, but it's also the period of maximum opportunity. Capitulation literally means concede. In the financial sphere, this term reflects a period of aggressive selling when the last of the bulls concede defeat to become bears themselves. What is crypto market capitulation? Suppose a crypto currency drops 30% overnight. An investor is left with two options: they can continue to hold or sell to realize the losses. There would be sharp decline in price if most investors decide to realize their losses. In addition, this selling pressure could produce a price bottom as the bears eventually run out of coins to sell. But while it's very difficult to predict and identify capitulation, there are a few recurring market signals that can help traders prepare for such an event. A crypto market capitulation will typically include most of these condition: Rapid p...