Bitcoin (BTC) Falls Below $69,000… Signs of ‘Full Capitulation’ Emerge

JH Kim

Summary

Bitcoin (BTC) fell below $69,000, prompting speculation that the market may be entering a full capitulation phase.
Indicators are deteriorating, including large-scale loss-taking sales by short-term investors, the Fear & Greed Index in extreme fear, and an oversold RSI reading.
Markets are weighing whether these capitulation signals could be a precursor to price stabilization over the medium to long term, while also flagging caution tied to the macro environment and liquidity conditions.

Bitcoin (BTC) has slipped below $69,000, raising the possibility that the market has entered a so-called “full capitulation” phase. Analysts say large-scale loss-taking sales by short-term investors and a simultaneous deterioration in technical indicators are emerging.

According to an analysis published on the 5th (local time) by cryptocurrency-focused outlet Cointelegraph, panic selling by short-term holders is intensifying during Bitcoin’s downswing. The Fear & Greed Index remains in the extreme fear zone, while the Relative Strength Index (RSI) is also signaling oversold conditions.

The outlet noted that this combination of indicators has often been observed in past cycles in the stage immediately preceding a market bottom. When the pace of price declines coincides with worsening investor sentiment, it may indicate that a substantial portion of selling pressure has already been absorbed.

On-chain data also suggest short-term investors are moving into a capitulation phase. Over the past 24 hours, short-term holders were estimated to have deposited about 60,000 BTC to exchanges, a move interpreted as unwinding positions despite losses. At current prices, the amount is worth about $4.2 billion.

While the market is leaving room for continued volatility in the near term, attention is focused on whether these “capitulation signals” could, over the medium to long term, presage price stabilization. Still, cautious views are also being raised that the timing of a bottom could vary depending on the macro backdrop and liquidity conditions.