Capitulation: Capitulation selling
Capitulation Refers to a phase in which investors collectively sell their holdings due to panic and continued declines, often accompanied by abnormally high sell-order volume and rapid price drops. It may be near a market bottom, but this alone cannot be used to predict future performance.
Concept and performance
Capitulation It can be understood as investors “capitulating” to market pressure. As fear of losses intensifies, many no longer wait for prices to recover but instead sell as quickly as possible at the prices available at that time. Sell-order volume far above normal within a short period, accompanied by rapid price declines, is an important clue for identifying this phenomenon.
Possible subsequent developments and limitations
After panic selling ends, the market may enter a period of sideways consolidation or may move upward. A sharp decline can sometimes lead to a rapid rebound, but this is not a reliable signal of future performance. Prices in the cryptocurrency market may fluctuate more quickly and violently, so related phenomena may also occur within a shorter period.
Original Tutorial
https://www.binance.com/en/academy/glossary/capitulation
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