Bitcoin’s Lowest Level Since FTX: Critical Index Signals Capitulation at 19.9

According to Glassnode data, the Bitcoin (BTC) cycle index has dropped to 19.9, marking its lowest level since the FTX collapse and signaling that the market is approaching the capitulation phase.

The leading cryptocurrency Bitcoin (BTC) has fallen to multi-year lows on a critical indicator tracking market cycles. The Cycle Position Heatmap shared by on-chain data platform Glassnode revealed that the index has dropped as low as 19.9. This data indicates that overall market sentiment has entered its “coldest” period since the bankruptcy of the FTX exchange.

Capitulation Signals and Bottom Expectations in the Bitcoin Cycle

The heatmap analyzes investor psychology in the market through specific color codes to show the current stage of the cycle. Red regions on the chart represent extreme euphoria and market peaks, while blue tones symbolize capitulation periods where investors have lost hope. Currently, the index’s position in the light blue zone is considered a strong historical sign that the final stages of the bear market have been entered. However, experts point out that past major bottoms typically formed in the dark blue zone between 0 and 20.

In the shared time-series chart, it is evident that the major price bottoms in 2018-2019 and 2022 occurred at points where the index deepened further. Glassnode analysts emphasize that the current 19.9 level is a critical threshold, but a single indicator should not be relied upon for definitive bottom confirmation. For a robust analysis, it is recommended to monitor points where various data converge. The current outlook strengthens the possibility that the Bitcoin (BTC) price may remain under pressure for a while longer or could be in the final stretch just before the actual bottom.