Bitcoin Sees Panic Selling: A Capitulation or Leverage Reset?

As Bitcoin dips below $65,000, many short-term holders are selling at a loss. Is this capitulation, or merely a reset of leverage in the market?

Bitcoin's recent downturn past the $65,000 mark, heading towards $60,000, appears to be a crucial stress test that the market had been avoiding. This drastic shift in price has not only triggered a reevaluation of positions among traders but also broadened the scope of discussions away from explanations based on single events.

In fact, mainstream media outlets have labeled the week as Bitcoin's most challenging weekly performance since the end of 2022, with the cryptocurrency's value briefly dipping to alarming levels. This situation has raised questions among investors about whether the current trend indicates a capitulation phase or simply a necessary reset of leveraged positions.