BTC Capitulation Hits FTX Levels. The Market Just Flashed Red.
The market just witnessed a violent shift in sentiment following the recent $BTC pullback. On-chain data is screaming panic, but only from one specific cohort. Short-Term Holder sell-offs and realized losses just spiked dramatically, reaching levels comparable only to the catastrophic collapse we saw in late 2022 during the FTX fallout. This means recent buyers—those holding for less than 155 days—have aggressively capitulated to hedge against volatility.
This massive flush is critical. While weak hands fold, the true bedrock of the market, the Long-Term Holders (LTHs), remain completely resilient. Their conviction is high, showing minimal realized losses. This divergence is the signal: STHs are providing liquidity to the seasoned players. This is not a macro reversal; it is a rapid cleansing of leverage and weak conviction, setting the stage for the next leg up, if history is any guide.
This is not financial advice.
#Bitcoin #OnChain #MarketStructure #CryptoAnalysis #BTC
🧠
