Unlike many "professional" traders - I (as an intermediate trader - with strategy and money management system in place) can point out the fact, that capitulation occurs when even HODLERS loose hope. We are in a bear market - we all witness lots of doubt and confusion. If you look at the monthly volume you see we are far from the bottom - a lot of people still hope for a bounce - and here it is (few green candles and nice profits over the course of last few days indeed). However ... look again at such popular wallstreet cheat sheet... if we already did hit a bottom... there will be a retest in coming weeks (just a thought).
My mistake guys. was looking at the wrong side. Not enough coffee. Ya, the capitulation candle was the lowest spot on 2014 chart. but it retested several times before massive volume came in for the bull market. But still your observations only mean we are far from capitulation not the bottom. The bottom can be anybody's guess at this point. And for long term probably somewhere around now would be a good entry point.
crypto_poet
⋅
@groovyretirement, Thank you for your time and suggestion. Sorry for late reply - only now I realised your reply in this thread. It's now time to study your instructions - please allow some time for reasonable answer... Happy Xmass.
groovyretirement
⋅
look at a weekly or a 3day time frame. look at capitulation candle in 2014. then look for the bottom. it was in before capitulation only to retest a few times before capitulation and then up.
groovyretirement
⋅
massive volume candle on monthly for capitulation does Not reflect a bottom necessarily. It bottoms most of the time on a smaller volume candle. look at 2014. The bottom came before capitualation . capitualation candles were NOT lower than bottom candles wich came before the capitualation. Right after capitualation is the upswing. Not right after the bottom. After bottom there is usually months before capitualion. Your idea that we are far from the bottom is incorrect. It just ONLY shows we are far from capitualation.
erelerel
⋅
volume bar in this website based on "BTC" not "USD" so if you think in terms of USD maybe we already have the same volume than previous bottom.
tearliner
⋅
@erelerel, Was about to say this. low IQ ppl don't realize this fact