📉 What Is Capitulation in Crypto?
Capitulation is a phase in the market where fear peaks and traders give up.
It happens after a prolonged downtrend, when selling pressure becomes extreme and most participants rush to exit at any price.
🔻 What Capitulation Looks Like
Capitulation is usually marked by:
Sharp and aggressive price drops
Very high trading volume
Widespread panic and negative sentiment
“I’m done with crypto” type reactions
This is when weak hands exit the market.
🧠 Why Capitulation Matters
Capitulation often signals that:
Most sellers are already out
Selling pressure is near exhaustion
The market may be close to forming a bottom
It doesn’t guarantee an immediate reversal, but it often marks the end of maximum pain.
💡 Key Takeaway
Capitulation is when fear is highest — and opportunity often begins to appear.
Smart traders watch for confirmation, not emotions.
