Bitcoin has officially broken key support levels, signaling a major shift in market structure โ ๏ธ๐
After confirming the loss of the $84,000 daily support, $BTC has now fallen below another critical level at $79,541 ๐ป
This sequence of breakdowns across major daily supports strongly suggests a regime change โ Bitcoin has now entered a bear market ๐ป
๐ With this shift, the market has also moved into a new cycle phase: CAPITULATION
Capitulation is when a large portion of market participants accept losses and exit positions ๐ฅ
๐ As price continues to decline โ a defining trait of bear markets โ profitability keeps deteriorating, especially for Short-Term Holders (STH)
These investors typically have higher average entry prices, and as BTC moves lower, they are gradually forced to sell at a loss โ
This adds strong selling pressure on the spot market ๐ฉธ
๐ Right now, both sides of price action are bearish:
๐ป Spot market โ demand is weakening after previously holding price up
๐ป Futures market โ has remained mostly bearish since late 2023
Until recently, spot buying helped prevent a deeper breakdown, but that support is now fading, allowing downside momentum to accelerate ๐จ
๐จ As price loses stability, fear and uncertainty grow
Investors increasingly sell โ often at a loss โ which triggers further declines, repeating this cycle again and again ๐๐
This process typically continues until equilibrium is reached, and that usually takes time โณ
๐ On-chain data confirms this capitulation phase:
๐ STH-SOPR shows short-term holders are actively realizing losses โ a classic capitulation signal
๐ฆ Rising BTC reserves on exchanges (CEX) indicate growing sell-side intent, as coins move from wallets to trading platforms
๐ง Additional on-chain insights:
๐ UTXO Age Bands reveal average cost levels across different holder groups, showing which cohorts are entering pressure zones
๐ MVRV highlights the compression of unrealized profits, suggesting many participants are choosing to lock in gains or cut losses in a clearly bearish environment
โ ๏ธ In short:
This is not panic โ this is capitulation.
And capitulation is a process, not a moment ๐ฅ๐
#BTCCRASHING #USGovShutdown #BitcoinETFWatch
