Bitcoin (BTC) sellers resumed operations on Thursday as the BTC price fell below $69,000, its lowest level since November 6, 2024.

Analysts said Bitcoin was showing signs of “full capitulation” and a potential bottom forming due to extreme market fears, panic selling by short-term holders and the relative strength index (RSI).

Key takeaways:

• Short-term Bitcoin holders sold almost 60,000 BTC in 24 hours.

• The Crypto Fear & Greed Index shows “extreme fear,” signaling a potential bottom.

• Bitcoin’s ‘most oversold’ RSI indicates sellers are exhausted.

The capitulation of short-term holders is deepening

According to CryptoQuant data, almost 60,000 BTC, worth approximately $4.2 billion at current rates, held by short-term holders (STH), i.e. investors who held the asset for less than 155 days, were transferred to exchanges at a loss in the last 24 hours.

This was the largest inflow from stock exchanges since the beginning of the year, which increases selling pressure.

“The correction is so severe that no BTC gain is moved by LTH,” CryptoQuant analyst Darkfost he said in the post on X, adding:

“It’s a complete surrender.”

Analyzing the volume of coins spent at a loss, Glassnode found that the 7-day SMA of realized losses rose above $1.26 billion per day.

This reflects a “marked increase in fear,” Glassnode said, adding:

“Historically, spikes in realized losses often coincide with moments of acute seller exhaustion, when marginal selling pressure begins to fade.”

Bitcoin’s capitulation rate also “saw its second-biggest jump in two years,” which previously coincided with accelerated de-risking and increased volatility as market participants reset positioning, Glassnode said.

“Extreme fear” can signal a market bottom

Crypto fear and greed Indexwhich measures overall cryptocurrency market sentiment, posted an “extreme fear” score of 12 on Thursday.

These levels were last seen on July 22, a few months before the BTC price bottomed at $15,500 and then began a bull run.

The data shows that in all capitulations, when the index reached this extreme level, short-term weakness was common, but almost every event triggered a rebound.

“We are at ‘extreme fear’ level and the cryptocurrency fear and greed index is 11” he said Analyst Davie Satoshi added in a Thursday post on Platform X:

“History has shown that it’s time to buy and accumulate more!”

Santiment Crypto Sentiment Platform he said in a Thursday post on X that investor sentiment “is becoming extremely bearish towards Bitcoin.”

“This remains a strong case for a near-term aid rally as long as the small crowd of traders continue to show disbelief towards the cryptocurrency as a whole.”

Bitcoin ‘most oversold’ RSI signals sellers exhausted

CoinGlass heat map shows that BTC’s RSI shows oversold conditions on five of the six time frames.

Bitcoin’s RSI is currently 18 on the 12-hour chart, 20 on the daily chart, and 23 on the four-hour chart. Other time frames also display oversold or almost oversold RSI values ​​such as 30 and 31 on the weekly and hourly time frames respectively.

In fact, TradingView data shows the weekly RSI is at 29 on Thursday, which analysts say is the “most oversold” since the 2022 bear market.

“Bitcoin is now the MOST oversold since the FTX crash,” CryptoXLARGE he said in a Wednesday post on X, adding that it reflected panic among investors.

“Historically, this is where fear peaks and opportunities begin,” the analyst added.

Bitcoin’s RSI remains at the same oversold level last seen around 16,000. dollars in 2022, which meant the phase of the “last big surrender”, he said HodlFM analyst in a recent post on X, adding:

“It’s not a signal per se, but historically speaking, risk/reward favors buyers in this case.”