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The point where holders give up and sell regardless of price.
Capitulation is mass surrender. Volume spikes, price drops hard and fast, and long term holders finally sell. It is emotionally the worst moment of a cycle.
It also tends to mark major lows, because after everyone who was going to sell has sold, very little supply remains to push price down.
Capitulation is visible on charts as a huge red candle on enormous volume, followed by a sharp bounce.
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