Finding Market Bottom Following a Massive Whale Capitulation

• • Technically, SHIB is printing an early uptrend on the 4-hour chart after bouncing from the bottom support zone.
• • This recovery sentiment occurs right after news of a major whale exiting and selling their assets at an 80% loss after holding for 2 years.

In the crypto trading world, the capitulation of major investors selling at a massive loss often acts as a contrarian indicator signaling the formation of a market bottom. The exit of this giant supply means the heavy selling pressure that has been overhanging the market is finally exhausted. Technically on the 4-hour chart, this narrative is validated perfectly. After touching the liquidity bottom in the ~$0.0000052 area, buyer volume immediately stepped in and printed a bullish Change of Character (CHoCH), confirmed by a series of upward Breaks of Structure (BOS), pushing the price back to the $0.0000061 range.

Although the bottom structure has formed and indicates a reversal, SHIB is currently facing immediate layers of supply zones in the $0.0000062 - $0.0000064 range. If momentum stalls and the price faces a hard rejection in this area, SHIB risks a short-term correction to retest the support floor around $0.0000058.