Bitcoin Price May Be Headed for a 'Deep Capitulation Event' as Market Structure Flashing Warning Signs

Crypto analyst Doctor Profit has identified a similar market structure to the setup seen before the FTX collapse in 2022, warning that Bitcoin may be approaching another capitulation event.

Despite briefly crossing $67,000 after a peace agreement between the US and Iran boosted market sentiment, Bitcoin shows a bullish divergence on the weekly chart and renewed buying pressure, similar to the setup before the 2022 crash.

According to Doctor Profit, many traders bought near the $20,000 level in 2022, only to be left with losses of around 20% after panic selling followed the market collapse.

On-chain data shows that many BTC holders are currently underwater, with unrealized losses reaching the second-largest in Bitcoin's history. However, realized losses remain relatively low, indicating that broad capitulation may still be ahead if investors begin selling aggressively at a loss.