Is Bitcoin in capitulation territory?

Bitcoin’s ( BTC ) ongoing volatility below the $110,000 mark is raising questions about whether the asset is destined for further losses, but historical data suggests ￰0￱ to on-chain data shared by analyst Ali Martinez, Bitcoin’s trader profit/loss margin currently sits around -5%. Historical patterns show that when this margin drops below -12%, the cryptocurrency tends to rebound strongly, signaling the end of major downtrends. Martinez’s data , retrieved from CryptoQuant on October 22, shows deep negative margins, indicating widespread unrealized losses among short-term holders, which have historically aligned with cyclical bottoms in Bitcoin’s ￰1￱ profit/loss margin.) October 22, 2025 In past cycles, similar breaks have often triggered 10% to 20% corrections, as traders reassess momentum and short-term sentiment turns ￰2￱ history repeats, a pullback of that magnitude could see Bitcoin revisiting levels around or even below $100,000, a psychologically important threshold.

However, the analyst emphasized that temporary dips below the support band do not always signal a full trend reversal, especially if BTC quickly reclaims the zone in subsequent ￰3￱ price analysis By press time, Bitcoin was trading at $108,224, down 0.5% in the past 24 hours and 3% on the weekly ￰4￱ seven-day price chart.