Bitcoin Primed For A Major Rebound Following ‘Final Capitulation,’ Analyst Predicts

Ash Tiwari

5 months ago

3 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Created by industry experts and meticulously reviewed

The highest standards in reporting and publishing

How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

After surging past $90,000 for the first time on November 12, 2024, Bitcoin (BTC) has been trading within a broad range between $91,000 and $108,000. However, some analysts remain optimistic that BTC is poised to break out of this range to the upside following what they describe as a ‘final capitulation.’

Bitcoin Consolidation Nearing Its End?

Crypto analyst Trader Tardigrade recently shared their analysis of Bitcoin’s price action on X. According to the analyst, BTC might be approaching a final capitulation before experiencing a significant breakout that could end its prolonged range-bound movement. The analyst commented:

The current crypto market sentiment isn’t great. I’d actually welcome a downturn in the next couple of days to complete this price action. Bitcoin experienced a final capitulation at the 27th bar during consolidation in January 2024, just before a massive rebound. If history repeats, the final capitulation level will be reached today or tomorrow. After that, BTC will surge with a massive rebound.

To support their prediction, Trader Tardigrade shared a chart comparing Bitcoin’s current price action with its behavior in January 2024. During that period, BTC consolidated for 53 days, underwent a final capitulation, and then rallied sharply, climbing from around $39,000 to as high as $71,000.

Interestingly, Bitcoin’s current consolidation phase has already lasted over 50 days. If BTC follows its January 2024 pattern, the final capitulation could occur on January 13 or 14.

Another crypto analyst, @CryptosBatman, pointed to tightening Bollinger Bands on Bitcoin’s three-day chart. They highlighted that the Bollinger Bandwidth has reached an extremely oversold level and remarked:

Historically, such lows signal a local bottom. Remarkably, the bandwidth is now tighter than when Bitcoin was at $50K, suggesting the bottom might be very close.

For the uninitiated, Bollinger Bandwidth is a metric derived from Bollinger Bands that measures the distance between the upper and lower bands relative to the moving average. It is often used to identify periods of low volatility, which can signal potential breakout opportunities.

Crypto Analysts Foresee A Positive 2025

While Bitcoin’s ongoing consolidation phase might frustrate bulls, many analysts remain confident that digital assets will benefit from multiple favorable factors in the coming months.

For instance, crypto entrepreneur Arthur Hayes recently predicted that BTC may rally in Q1 2025 on the back of the US Federal Reserve’s (Fed) decision to inject fresh liquidity into the US economy through money printing.

Similarly, crypto analyst Dave The Wave has forecasted that BTC is likely to hit a peak during summer 2025. At press time, BTC trades at $96,424, up 4.9% in the past 24 hours.

Featured image from Unsplash, Charts from X and TradingView.com

Ash Tiwari

Ash is a dedicated crypto researcher and blockchain enthusiast with a passion for diving deep into the evolving world of decentralized technologies. With a background in writing and a natural curiosity for how digital assets are shaping the future, he has immersed himself in various sectors of the cryptocurrency space, including decentralized finance (DeFi), NFTs, and liquidity mining. His journey into crypto started with a desire to fully understand the technology behind it, leading him to explore and engage with these systems firsthand.

Ash’s approach to DeFi goes beyond surface-level research as he actively participates in decentralized protocols, testing their functionality to gain a deeper understanding of how they operate. From experimenting with staking mechanisms to exploring liquidity mining strategies, he is hands-on in his exploration, which allows him to provide practical, real-world insights that go far beyond theoretical knowledge. This immersive experience has helped him develop a comprehensive grasp of smart contracts, token governance, and the broader implications of decentralized platforms on the future of finance.

In the NFT space, Ash’s interest is driven by the technology’s potential to reshape ownership and creativity in the digital age. He has explored various NFT projects, gaining insights into how these digital assets function within different ecosystems. His focus is on understanding the evolving relationship between creators and communities, as well as the innovative uses of blockchain technology to establish authenticity and provenance in the digital world. Ash’s research in this area often touches on the intersection of culture, technology, and community-driven projects.

A key area of his expertise lies in liquidity mining, where he has engaged with various decentralized platforms to understand how liquidity provision contributes to the functionality and security of DeFi ecosystems. Ash’s hands-on involvement has allowed him to analyze the risks, rewards, and broader implications of liquidity pools, giving him a well-rounded perspective on this integral part of DeFi. His understanding of risk management and protocol design allows him to provide insights into how these systems can be navigated effectively, with an emphasis on both opportunity and caution.

When it comes to communicating these complex topics, Ash’s writing is grounded in clarity and depth. He excels at breaking down intricate blockchain concepts into easily digestible information for a wide audience. Whether explaining the workings of decentralized exchanges or outlining the future potential of blockchain technology, Ash ensures that his content is accessible to both those new to the space and experienced participants looking for deeper insights.

Beyond DeFi and NFTs, Ash explores a wide array of emerging blockchain applications. His research spans areas like cross-chain technologies, decentralized governance, and blockchain’s potential to integrate with traditional finance. He is continuously learning and adapting to the latest developments, ensuring that his insights are both timely and relevant. His interest extends to how these technologies are creating new possibilities for decentralization, transparency, and trust in a variety of industries.

Ash’s commitment to engaging with the crypto space firsthand gives him a unique perspective that goes beyond what can be learned from research alone. His practical involvement allows him to stay ahead of the curve, offering readers and enthusiasts a clear and comprehensive understanding of the rapidly evolving world of blockchain. Whether delving into the technical mechanics of DeFi or exploring the cultural impact of NFTs, Ash’s approach is always rooted in curiosity, research, and a desire to make this technology accessible to all.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.