Bitcoin Price Drops To $115K After Rate-Cut Rally — But BTC Far From Capitulation

On Thursday, September 18, the Bitcoin price enjoyed some form of rejuvenation following the outcome of the United States Federal Open Market Committee (FOMC) ￰0￱ Reserve Chair Jerome Powell announced an interest rate cut for the first time in ￰1￱ general crypto market rallied on the back of this rate cut announcement, with the Bitcoin price running to a monthly high and almost breaking above the $118,000 level on the day. However, the premier cryptocurrency has failed to build on this momentum, retreating to around $115,500 on Friday, September ￰2￱ price unable to sustain a serious rally, the question on the other side is—is the Bitcoin market on the brink of capitulation?

BTC Market Shows Zero Signs Of Capitulation In a post on social media platform X, market analytics firm Alphractal revealed that the Bitcoin market is far from price ￰3￱ to the blockchain platform, the Bitcoin price has shown no signs of capitulation for over a year—since July ￰4￱ Reading: Bitcoin Price Forecast: Expert Predicts 70% Chance Of New Highs Within Two Weeks This on-chain observation is based on the Market Capitulation Index (0 – 3), which tracks potential periods of intense downward price ￰5￱ metric is based on three stress signals: Hash capitulation (>30% decline in 30 days), price capitulation (>50% drop), and supply capitulation (7-day active supply >15%), with each signal contributing a point ￰6￱ to Alphractal, scores of around 2 – 3 for the Market Capitulation Index indicate severe market stress and potential capitulation.

Typically, high values for this metric suggest extreme selling pressure. Meanwhile, scores between 0 and 1 signal normal market conditions for the Bitcoin ￰7￱ at the metric—which is at zero—and the three stress signals, the BTC market does not show any signs of capitulation, with the hash rate hitting new all-time highs in September. Furthermore, while the Bitcoin price has not particularly impressed so far in the past few months, it has mostly been in a consolidation range rather than in a downward ￰8￱ founder Joao Wedson noted in a separate post that it will likely take a few more months before the largest cryptocurrency market faces capitulation.

Ultimately, this means that the Bitcoin price still has a chance of witnessing another leg up in the current bull ￰9￱ Price At A Glance As of this writing, the price of BTC stands at around $115,400, reflecting an over 2% decline in the past 24 ￰10￱ Reading: Ethereum Price Will Still Climb Above $5,000 As Long As It Holds This Level Featured image from iStock, chart from TradingView