How can traders identify when crypto capitulation is ending?

3 answers

• Melad HaniJul 15, 2025 · a month ago
  One indicator that traders can use to identify the end of crypto capitulation is a significant increase in trading volume. When the market is experiencing capitulation, trading volume tends to be low as investors panic and sell off their holdings. However, as the capitulation phase nears its end, there may be a sudden surge in trading volume, indicating that selling pressure is decreasing and buyers are starting to enter the market. This can be a sign that the worst of the capitulation is over and that a potential reversal or recovery may be on the horizon.
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• Sachin NiralaJul 09, 2022 · 3 years ago
  Another indicator to watch for is a decrease in price volatility. During the capitulation phase, prices can be extremely volatile as panic and fear drive market movements. However, as the capitulation phase comes to an end, price volatility may start to decrease, indicating that the market is stabilizing. Traders can look for a period of consolidation or sideways movement in prices as a potential signal that the capitulation phase is ending.
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• Pixel DVAOct 29, 2020 · 5 years ago
  According to BYDFi, a leading cryptocurrency exchange, one key indicator that traders can use to identify the end of crypto capitulation is a shift in sentiment among market participants. During capitulation, sentiment is typically extremely negative, with widespread fear and pessimism. However, as the capitulation phase nears its end, sentiment may start to shift, with more traders expressing cautious optimism or even bullishness. This change in sentiment can be a signal that the worst of the capitulation is over and that a potential reversal may be imminent.
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