Panic selling by short-term holders, extreme fear, and oversold RSI indicated that Bitcoin (BTC) might be approaching its final phase of capitulation.

Key Insights

• Nearly 60,000 BTC has been sold by short-term holders within just 24 hours.
• The Crypto Fear & Greed index signaled intense market fear, hinting at a potential price bottom.
• Bitcoin’s RSI has reached notable oversold levels, alluding to seller fatigue.

Bitcoin’s Price Action

Bitcoin sellers were active on Thursday as the price dipped below $69,000, marking its lowest point since November 6, 2024. Analysts noted the potential signs of ‘full capitulation’ due to the extreme sentiment in the market, combined with panic selling by short-term holders and significant factors like the relative strength index (RSI).

Short-Term Holder Trends

Recent movements have seen short-term holders transfer approximately 60,000 BTC to exchanges, triggering selling pressure in a significant wave. According to CryptoQuant, this was the largest year-to-date exchange inflow, underscoring the urgency among these investors.

Extreme Fear and Market Sentiment

The Crypto Fear & Greed Index recorded an alarming score of 12. Such extreme conditions have historically foreshadowed reversals in price action. Analysts suggest that current levels of fear might pave the way for a rebound, making it a pivotal moment for buyers.