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Bitcoin (BTC) stayed rigid below $17,000 at the Dec. 19 Wall Street open as skeptical traders feared more downside.

BTC traders call time on upside potential

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD lingering around the $16,700 mark, practically unmoved over the weekend.

The pair saw only fractional volatility at the open, as United States equities fell slightly. At the time of writing, the S&P 500 and Nasdaq Composite Index were down 0.5% and 1%, respectively.

For Bitcoin traders, there was little to celebrate, with consensus forming around the potential for testing lower levels next.

“Bearish as long as it stays below the $19k,” Crypto Poseidon summarized alongside a chart.

Capitulation literally means concede. In the financial sphere, this term reflects a period of aggressive selling when the last of the bulls concede defeat to become bears themselves.

What is crypto market capitulation?

Suppose a cryptocurrency drops 30% overnight. An investor is left with two options: they can continue to hold or sell to realize the losses.

There would be sharp decline in price if most investors decide to realize their losses. In addition, this selling pressure could produce a price bottom as the bears eventually run out of coins to sell. 

But while it's very difficult to predict and identify capitulation, there are a few recurring market signals that can help traders prepare for such an event.

A crypto market capitulation will typically include most of these condition:

Bitcoin (BTC) starts the week before Christmas with a whimper as a tight trading range gives BTC bulls little cheer.

A weekly close just above $16,700 means BTC/USD remains without major volatility amid a lack of overall market direction.

Having seen erratic trading behavior around the latest United States macroeconomic data print, the pair has since returned to an all-too-familiar status quo. What could change it?

That is the question on every analyst’s lips as markets limp into Christmas with little to offer.

The reality is tough for the average Bitcoin hodler — BTC is trading below where it was two years and even five years ago. “FUD” is hardly in short supply thanks to the fallout from FTX and concerns over Binance.

The Nigerian government will reportedly soon pass a law that will recognize the usage of Bitcoin (BTC) and other cryptocurrencies as a means to keep up to date with “global practices.”

The news was reported by Nigerian-based masthead Punch Newspapers on Dec. 18 following an interview with House of Representatives Committee on Capital Markets chairman Babangida Ibrahim.

The report stated that if the Investments and Securities Act, 2007 (Amendment) Bill is signed into law it would allow the local Securities and Exchange Commission to “recognize cryptocurrency and other digital funds as capital for investment.”

Ibrahim stressed the need for Nigeria to keep up to date with trends and developments in capital markets:

“Like I said earlier during the second reading, we need an efficient and vibrant capital market in Nigeria. For us to do that, we have to be up to date [with] global practices.”