Crypto: Bitcoin In ‘capitulation Zone’ As Traders Debate When BTC Price...
Bitcoin appears trapped within a capitulation zone where long-term holders continue to sell, and bearish onchain metrics hint at further downside. Will a drop to $40,000 mark the final price bottom?
Bitcoin (BTC) sellers resumed their activity on Thursday as the Bitcoin price turned away from its intraday high of $68,300. Analysts said that Bitcoin remained in capitulation, which could push the price lower, potentially reaching a bottom during the last quarter of 2026.
Multiple onchain indicators suggest Bitcoin is in deep capitulation as downside risks remain.
Long-term holder net-position change shows extreme distribution, mirroring past corrections that preceded further downside before bottoms.
Analysts forecast BTC price to hit a bottom in Q4/2026 based on various technical and onchain metrics.
Bitcoin’s 46% drawdown from its all-time high of $126,000 has left a significant portion of holders underwater, and data shows they are now reducing their exposure.
Glassnode’s long-term holder (LTH) net-position change shows that Bitcoin held by these investors over 30 days decreased by 245,000 BTC on Feb. 6, marking a cycle-relative extreme in daily distribution. Since then, this investor cohort has been reducing its exposure by an average of 170,000 BTC, as shown in the chart below.
Related: Binance teases Bitcoin bullish 'shift' as crypto sentiment hits record low
Similar spikes in LTH net position change appeared during the corrective phases in 2019 and mid-2021, leading to BTC price consolidating before extended downtrends.
CryptoQuant data shows that Bitcoin’s MVRV Adaptive Z-Score (365-Day Window) has fallen to -2.66, reinforcing the intensity of the sell-side pressure.
Source: CoinTelegraph
