Short-term investors are selling at losses: a sign of capitulation. According to observed data, a significant portion of these participants is selling bitcoin at losses.
This phenomenon is often interpreted as a phase of capitulation, a moment within the bearish cycle where the less resilient participants abandon their positions. Historically, this type of behavior has appeared in advanced stages of market corrections.
Based on technical and on-chain data, different scenarios can be proposed:
1. Bearish scenario: If selling pressure continues and liquidations in futures remain, the price of bitcoin could progressively head towards lower levels after testing the support of $62,780. What investors should observe in the coming days
To understand where the price of bitcoin is heading, analysts often monitor several key indicators:
Balance between purchases and sales in the spot market. Volume of liquidations in futures. Behavior of short-term investors. Reaction of the price at relevant support levels.
These elements allow for the evaluation of whether the capitulation phase is close to concluding or if the market still needs more time to find stability.$KITE
