'Insane Evidence' Bitcoin Has Capitulated Over the Last 2 Months - Analysis

Signals that Bitcoin is in classic capitulation mode are everywhere, and each is a "rare event", says Charles Edwards of Capriole.

Market news

Bitcoin (BTC) is providing overwhelming evidence that it is capitulating, and it's time to return to the upside accordingly, according to new analysis.

In a Twitter thread on August 3, Charles Edwards, CEO of crypto asset manager Capriole, revealed what he called the “12 Bitcoin sellouts.”

“Positively skewed risk-returns” for Bitcoin

With BTC price action recovering from multi-year lows, but still near key bear market support, opinions vary widely as to what happens next.

Some are demanding a return to levels even lower than June's low of $17,600, while others say a "bear market relief rally" could take BTC/USD as low as 40 $000 first.

For Edwards, the raw evidence suggests that the past few months have been bearish enough and that behind the scenes Bitcoin has quietly capitulated.

“The sheer number of evidence for a major Bitcoin sellout today is insane,” he wrote of his 12 key examples.

"Each event on its own is a rare event and increases the likelihood that forward risk-returns will be positively skewed."

In addition to popular on-chain signals previously covered by Cointelegraph, including MVRV and NUPL, Edwards' evidence includes macro triggers, such as the poor performance of US equities and stagnant M2 money supply growth.< /p>

“We just saw the _worst_ inflation-adjusted declines in traditional markets in the last 8 generations. Enough said,” he continued, noting that the S&P 500 had recorded its worst returns in terms of real since 1872.