Bitcoin Correction Nears End as Eight Capitulation Signals Flash
VanEck researchers believe that Bitcoin's correction may be nearing an end and entering an accumulation phase. The asset manager has identified eight of its twelve capitulation signals as currently flashing, suggesting that the market has experienced 'what appears to be bitcoin price capitulation.' This reading indicates a possible transition from a bearish to a bullish trend.
The current correction has lasted for almost 11 months, and VanEck notes that previous bear markets have taken an average of 12.7 months to reach their lowest point. Based on historical cycles, the asset manager predicts that this transition could occur in September or November.
However, VanEck cautions against treating these signals as a surefire indication to buy Bitcoin, noting that similar periods in the past have produced returns below the baseline. The researchers attribute this potential shallower trough to increased institutional investment and spot bitcoin exchange-traded products.