Since the April high, BTT has steadily been losing value. Over the course of this bearish move, BTT has formed a descending channel.
The key part of this channel is the fact that every time the bottom trend line is touched, it is because of a capitulation event. I count a total of 4 capitulation events where the price of BTT has been reduced by >20% or more.
As seen on the chart, BTT has been hugging the top trend line since early July. Since this morning is appears that BTT has finally shaken off the top trend line and is moving downwards.
If this means that we still have a capitulation event in the near future, hard to say. In the end it's all depending on Bitcoin. However, there's still a case to be made for the immense overvaluation of BTT, which would explain why there's a higher chance for a capitulation event in the near future.
For the future, we can think about going long once the price breaks out of the descending channel. For now, things are very bearish.