Bitcoin is flashing 8 of 12 capitulation signals, a metric that could indicate the cryptocurrency is nearing a bottom. VanEck, a major asset manager, has analyzed the data and suggests similar setups have historically produced below-average returns. Historically, when 8 of 12 capitulation signals are triggered, the 90-day and 180-day returns for bitcoin have been below average. This has led VanEck to caution that while the signals are flashing, the market's bottom is not yet in.
This article is Bitcoincryptos' summary and analysis of reporting originally published by CoinDesk. Read the full original report at the link above.
The signals are based on several market metrics, including the relative strength index and the moving average convergence divergence. VanEck has developed a framework that assigns a score to each metric, with a total score of 12. If 8 or more signals are triggered, it may indicate a market bottom.