We are seeing Bitcoin at $67,257, a level not visited since late 2024. As you well remember, "the market punishes emotions and rewards discipline", and what that extended red candle reflects is precisely a wave of emotions: panic and capitulation.

Here I detail why what you see on your screen is considered a phase of capitulation:

1. Chart Analysis (Intent Candle)

Key Support Break: The price has forcefully pierced the psychological zone of $70,000. Upon breaking this level, cascades of liquidations of long positions and stop-loss orders were activated, accelerating the fall.

The "Air Pocket": Between $70k and $68k there was very little recent transaction history, creating a void that the price crossed as if it were air, without finding brakes.

Panic Volume: Although in your capture the volume is not the main focus, the price action of the last 4 hours shows a vertical drop, typical of when the "weak hands" finally give up and sell at any price.

2. Fundamental Context of February 5

The market is reacting to a combination of factors that have "broken" the patience of the retail investor:

Treasury Stance: Treasury Secretary Scott Bessent recently clarified before Congress that the government does not have the authority to "rescue" the market or force banks to buy BTC, which extinguished rumors of immediate state intervention.

Macro Pressure: The Federal Reserve has maintained a hawkish stance, eliminating hopes for short-term rate cuts, strengthening the dollar and punishing risk assets like Bitcoin.

3. The Sentiment: Discipline vs. Emotion

Capitulation is usually the last stage of a corrective cycle. It is the moment when sentiment reaches "Extreme Fear". #JPMorganSaysBTCOverGold #WriteToEarnUpgrade