Historic Capitulation Signals Possible Bitcoin Bottom, but Analysts Warn More Volatility Ahead
The post Historic Capitulation Signals Possible Bitcoin Bottom, but Analysts Warn More Volatility Ahead appeared on BitcoinEthereumNews.com. Bitcoin Bitcoin hasn’t just fallen in price — it has fractured sentiment. In a matter of weeks, the market has shifted from confident trend-followers to two sharply opposed camps: those bracing for further collapse and those convinced that this is exactly how a long-term bottom begins. Key Takeaways: Blockchain data shows short-term Bitcoin holders are experiencing record unrealized losses. Analysts are divided, with predictions ranging from a drop below $75K to a possible surge toward $110K in 2025. Institutional selling is heavy, but increasing buyer absorption on major exchanges hints at early stabilization. The strongest evidence of emotional strain isn’t on the charts but on the blockchain itself. On-chain data shows that short-term holders are experiencing the worst unrealized losses in Bitcoin’s history, with roughly 99% of recently acquired coins underwater. That breaks every prior stress event — including the COVID crash and the FTX implosion — which many traders once thought were “the ultimate capitulations.” Capitulation Shows Up on the Blockchain Before It Shows Up in Price Analysts note that extreme capitulation among short-term wallets has historically aligned with major turning points. Chris Beamish pointed to net unrealized profit/loss data now plunging far below levels associated with all previous cycle lows, describing it as a moment when confidence evaporates almost instantaneously. Former BitMEX CEO Arthur Hayes argues that every bottom starts with a phase like this — brutal, chaotic, and emotional — long before the price stabilizes. Only After the Data Came the Predictions Once the severity of the sell-off became visible, commentary from large-audience voices arrived.John Deaton said that a drop below $75,000 would not surprise him, but he framed it not as a bearish call — instead as something consistent with how Bitcoin behaves before a major reversal. If selling pressure cools and confidence returns, Deaton thinks…
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