According to the on-chain analytics platform, retail participants are capitulating at a rate not seen in two years, with the Bitcoin environment dominated by fear and pessimism. The chart image captures a pronounced downward swing in the sentiment line, showing that positive commentary has been overwhelmed by bearish voices as the Bitcoin price correction deepened.
Speaking of Bitcoin’s price correction, market conditions throughout November have led to repeated bouts of selling as traders react to every failed attempt at recovery. The candlestick pattern on the chart shows persistent lower highs and lower lows, and this structure has increased retail panic.
Panic selling is visible in the sharp downturn on both the price chart and the sentiment indicator. The capitulation is now unfolding across multiple crypto exchanges, with many traders abandoning bullish positions after watching Bitcoin lose important psychological levels around $90,000.
At the time of writing, Bitcoin is trading at $85,502, up by 1.3% in the past 24 hours.
Featured image from The Financial Commission, chart from TradingView
