K33 sees 'strong case' bitcoin has bottomed amid 'capitulation-like' conditions
Investment firm K33 believes that Bitcoin may soon reach a bottom, given the signs of 'capitulation' in the cryptocurrency market. According to the analysts, a prolonged consolidation phase of Bitcoin's price in the range of $60,000-$75,000 will follow the hectic trading and high volatility.
Against the backdrop of Bitcoin's sharp drop below $50,000 in recent weeks, experts note a number of signs of the depletion of sell-offs, which may indicate the formation of a short-term bottom. These include a decrease in activity on cryptocurrency exchanges, a decline in trading volumes of derivatives, as well as a weakening of selling pressure from miners.
Although further price corrections are possible in the coming months, K33 analysts believe that Bitcoin is already in the process of forming a stable price bottom, after which consolidation and gradual recovery will follow. At the same time, experts warn that volatility in the cryptocurrency market will persist, so investors should exercise increased caution.
The key indicator that could signal the end of the correction, the analysts call the transition of Bitcoin to a 'capitulation' state against the backdrop of mass closing of long positions and sell-offs by weak holders. If this assumption is justified, the recovery of Bitcoin's price to new record levels may take from 6 to 12 months.