Charles Edwards says Bitcoin treasury companies are showing signs of “capitulation”
BIBIBI
AT A GLANCE
Charles Edwards says Bitcoin treasury companies are showing signs of “capitulation” and interprets the signal as a buying opportunity based on historical occurrences. The underlying data has yet to be verified.
Article
⚡️View: Bitcoin treasury companies are showing signs of “capitulation”; the previous 3 occurrences were all buying opportunities
BlockBeats reports,November 11, Capriole Fund founder Charles Edwards wrote that Bitcoin treasury companies are “capitulating.” The ratio of their cumulative purchases to sales has just fallen below 90%. (Note: A declining ratio generally indicates relatively greater selling pressure, which is bearish, but extreme lows have historically coincided with bottoming zones.)
Historically, this has occurred only 3 times, and each was a good buying opportunity. He therefore believes that although companies are selling in the short term (capitulating), historically this has been a positive signal for Bitcoin.
Original link:https://m.theblockbeats.info/flash/376724
Key points
01
On November 11, BlockBeats relayed the views of Capriole Fund founder Charles Edwards.
02
Edwards says the ratio of Bitcoin treasury companies’ cumulative purchases to sales has just fallen below 90%。
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Edwards says similar circumstances have occurred only 3 times historically, and each was a good buying opportunity.
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He believes that although companies are selling in the short term, historically this has been a positive signal for Bitcoin.
AI-assisted interpretation
The following is analysis, separate from reported facts. Verify important claims independently.
This report relays a market judgment: “capitulation” refers to the corporate selling described in the article. A note in the original report interprets the declining ratio as an increase in relative selling pressure, while Edwards offers a more optimistic interpretation based on similar past occurrences. Historical performance and whether it is worth buying now are separate questions.
Why it matters to readers
The same indicator is given interpretations in the article: relatively greater selling pressure in the short term and an optimistic signal based on historical occurrences. Understanding the difference can help prevent a market view from being mistaken for a confirmed bottom.
Do not assume that the previous 3 occurrences being buying opportunities means this one will be too; first verify the indicator’s methodology, the underlying data and the historical cases.
Risks and unknowns
The original report does not provide a complete definition of the ratio, its statistical scope, time window or underlying data, so the claim that it fell below 90%cannot be independently verified from the report.
The original report does not specify the dates, price performance or criteria for identifying buying opportunities in the 3 historical cases.
The original report does not provide purchase or sale quantities for specific companies, so the actual scale of current selling cannot be confirmed from it.
Whether the historical cases apply to the current situation remains unproven; they cannot establish a bottom or confirm future price movements.
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Related concepts
Bitcoin treasury companies
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