This is the opinion of Chris Beauchamp, an analyst at the online trading platform IG. Speaking to the Financial Times, Beauchamp stated that the crypto market leader is heading for a “capitulation moment” when a critical mass of investors begin bailing out of the market, fueling a vicious cycle of price falls and further selloffs.
Unhappy Long Term Holders?
CCN recently reported that Genesis Trading CEO Michael Moro stated that the bitcoin price is likely headed for a $3,000 support level after breaking $4,000 last week. This, he said, was caused by a selloff among older bitcoin holders who bought in before the 2017 bull run. According to him, in the aftermath of the destructive Bitcoin Cash community split which had a negative impact on the bitcoin price, they started selling their holdings either to realise gains or cut their losses in case the market dips further.
Echoing this analysis, Beauchamp stated that while many investors may have been happy to hold their bitcoin portfolio at or around $6,000, they were “much less happy” to keep on holding at $4,000 and below. In his words, such investors “would rather take the money and run.” He further revealed that over the past week, IG had seen a 20 percent increase in bitcoin short positions…