Bitcoin (BTC), which has seen significant volatility in the first half of 2018, was impacted by a variety of uncertainties and events, such as the LUNA crash.
Glassnode believes in the top Cryptocurrency he has not succumbed to two major capitulation events in 2022. Market insight provider explained:
“2022 has seen Bitcoin markets weather two enormous capitulation events, both with the largest BTC transfer volume in loss since 2011. The total loss in transfer volume was 538k BTC when LUNA collapsed. This was followed by 480k BTC as the market traded below the 2017 ATH.”
Source: GlassnodeBitcoin was not spared from the shockwaves created by the collapse in LUNA and UST which were the Terraform native tokens. This was the first major capitulation event.
The top cryptocurrency recovered after 538,000 BTC were lost.
After Bitcoin fell below $20,000 in 2017, the second capitulation event is still taking place.
Capitulation occurs when investors stop trying to recover their lost gains due to falling prices. Glassnode recently stated that this was happening in BTC markets because there wasn’t yet a resilient bottom.
Rekt Capital crypto analyst acknowledged that bear market bottoms take time and are costly. said:
“Typical BTC bear market bottoms tend to take months to develop before a new macro uptrend begins. BTC has been migrating at current prices only for a few short weeks. History suggests it is too premature to expect a full-blown macro trend reversal so soon.”
Rekt Capital stated that the psychological price at $20,000 was the level to monitor based on whether it would be strong or weak as a support level.
Bitcoin surged by 4.38% over the past 24 hours to hit $22,337 in intraday trading according to CoinMarketCap.
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