The worst of the capitulation for bitcoin is behind us now.”

The Risk-Off Signal indicator has collapsed, and that is good news for those longing for a rebound in the price of bitcoin. The selling pressure for bitcoin has significantly decreased.

There is a high probability that bitcoin has reached the bottom of this decline.

The price of bitcoin (BTC), which has dropped from its all-time high of 126,200 dollars to USD 82,000, may be approaching its final stage of capitulation.

The firm Swissblock asserts that the digital asset “has taken its first real step towards forming a bottom.” This is driven by a sharp decline in the Risk-Off Signal metric. That indicator measures the level of risk aversion in the bitcoin market. The Swissblock chart shows how the red zones — periods of high risk and selling pressure — recently gave way to an accelerated decline of the indicator. In previous episodes, this behavior preceded the formation of a bottom, reflected in the blue zone. The firm maintains that a second wave of weaker selling, with the price defending lows, usually signals “seller exhaustion” and a gradual shift of control towards buyers.

“It is possible that the worst of the capitulation is probably behind us, for now,” says this firm.

Analyst JA Maartunn agrees with this diagnosis. He points out that short-term holders sent 62,400 BTC to exchanges at a loss. This comes at a time when exchange-traded funds (ETFs) have accumulated a decline of 4,660 million dollars from their peak.