Blockchain Glossary

Capitulation

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This is one of the panic selling, which builds the momentum that causes a huge decline in the stock prices that drops them to the bottom. The floor is usually near/below the prior support levels. The bottom is always a place where everything does look cheap to purchase. By definition, the bottom marks the market turn, followed by the sustained, broad rally. During the capitulation selling period, the market watchers do talk incessantly concerning the fear in the market. If the fear is more then, it looks like a market is likely to hit bottom.

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