Bitcoin Price Drops Below $70K as Short Holders Hit Mass Capitulation

Meanwhile, another analyst said that ‘weak hands’ have left the bitcoin market, which is usually a long-term bullish sign.

After another unsuccessful attempt to firmly recover the resistance of $ 72,000, the price of bitcoin dipped again twice, falling below $ 70,000.

Renowned analyst Michaël van de Poppe weighed in on BTC’s long-term performance, explaining why the current environment could be a “good time to buy.”

BTC Tanks as STHs Reach Capitulation

Last week, bitcoin reached $76,000 for the first time in a month and a half. The subsequent rejection pushed it south to below $68,000, where it found support and broke through to $72,000 yesterday. However, it rebounded and dipped below $70,000 earlier this morning, as it continues to be heavily influenced by the war in the Middle East and developments in other financial markets.

Van de Poppe noted that short-term holders of the largest cryptocurrency have ‘lost a lot, something called’ Capitulation. He added that the indicators for this metric now mimic the current market sentiment ‘really well.’

The analyst explained that many investors expected a strong BTC rebound when it initially fell to $80,000, which is why they bought more. However, as the commodity continued to return to levels below $70,000, their positions turned red nearly two months ago.

This turned the entire market into a ‘fear,’ and van de Poppe said he had never seen it this bad before. However, “this has proven to be a good time to buy property, as markets remain high 12 months after such an event.”

Short term owners of #Bitcoin they lost a lot, something called ‘Capitulation’.

One of the most interesting metrics is that it accurately mimics current market sentiment.

The latest crash is on #Bitcoin had the same impact as the 2020 COVID crash or decline… pic.twitter.com/L9AXlnGrk6

– Michaël van de Poppe (@CryptoMichNL) March 25, 2026

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Weak Hands Out

In a slightly related note, fellow analyst Ali Martinez noted that Bitcoin’s Realized Cap for new owners has “reached an all-time low.” According to him, this means that the ‘weak hands’ have disappeared from the BTC market, as these red areas “represent a complete washing of the speculative foam.”

Such situations have led to major changes in market dynamics, as when the supply of speculative interest dries up, only the “big players” remain. History shows that this is often the transition period from “the cooling period to the next great accumulation phase.”

“Weak hands” have officially left Bitcoin $BTC.

Bitcoin’s Realized Cap for new owners has hit a record low. Historically, these “red zones” represent the complete elimination of imaginary bubbles.

When speculative interest dries up, we are left with the market… pic.twitter.com/2njSuchFS1

– Ali Charts (@alicharts) March 25, 2026