Bitcoin in ‘capitulation zone’ as traders debate when BTC price will bottom

💡 DMK Insight

Bitcoin’s current struggle around $40,000 is more than just a number—it’s a psychological battleground. Long-term holders are offloading their positions, which suggests a lack of confidence in a quick recovery. This selling pressure, combined with bearish on-chain metrics, indicates that we could see further downside if this trend continues. If Bitcoin breaks below $40,000, it could trigger a cascade of stop-loss orders, pushing prices even lower. Traders should be wary of this capitulation zone, as it often precedes significant volatility. On the flip side, if Bitcoin manages to hold above this level, it might attract bargain hunters looking for a potential reversal. Keep an eye on volume trends and sentiment indicators; a spike in buying volume could signal a shift. Watch for key resistance levels around $42,000 and $45,000, as these could be pivotal for any recovery attempts.