Is Bitcoin Market Sentiment Turning From Fear To Capitulation?

as Bitcoin (BTC) keeps hovering around the $20K area, market sentiment could change from fear to capitulation.

“Bitcoin has moved from $69,000 to $17,600, and people are still looking for signs of capitulation? There could be another drop to $16,000-$14,000, but keep in mind that you can never hit BTC lows Won’t arrive. DCA all the way,” market analyst Ali Martinez Explained,

Bitcoin fell to a low of $17K over the weekend, but it has been able to reclaim the $20K level. The leading cryptocurrency was hovering around $20,203 during intraday trading, according to CoinMarketCap,

Martinez first noted,

“Market sentiment around bitcoin has shifted from “fear” to “surrender.” This represents the final phase of a bearish cycle, before market sentiment is expected to signal the start of a new bull market. Changes to “Hope”.

Source: Glassnode

Market surrender occurs when investors give up trying to recover lost profits based on falling prices. As a result, analysts believe that this reflects a market bottom.

On the other hand, Bitcoin needs to stay above the crucial support area of ​​$20K as this will increase the chances of momentum building. Martinez noted:

“Over 400K addresses bought 516K BTC at $19,200, which should act as support. Nevertheless, the transaction history also shows that 700K addresses bought the first 520K BTC for $20,300 and $21,500 These are the most important support and resistance areas that you should focus on.”

Meanwhile, bitcoin needs to break above $22,500 to retest the 200-week moving average (MA) as support, They say Crypto analyst Rect Capital.

Source: TradingView/RektCapital

The 200-week MA represents a long-term measure that shows four years of an asset’s price action. before, This serves as the final shield during the BTC bear cycle.

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