Capitulation

Capitulation refers to a significant market downturn characterized by intense selling activity, where investors may rapidly sell their holdings to minimize further financial losses. It is often described as panic selling. An example of capitulation in the cryptocurrency market is the selling that occurred after Bitcoin (BTC) reached an all-time high (ATH) of $20,000 USD in December 2017 and subsequently plummeted to $6,500 three months later. Shorter capitulation periods may be followed by a reversal in the value trend.