Bitcoin has just recorded one of the largest capitulation events in its history.
On-chain data shows that the market realized roughly $4.5 billion in losses, marking the second-largest realized loss day ever observed for Bitcoin.
Key takeaways:
- Bitcoin recorded about $4.5 billion in realized losses, the second-largest event on record.
- The losses reflect forced selling and capitulation, not just unrealized drawdowns.
- Technically, momentum has cooled into neutral territory, with early signs of stabilization after a sharp selloff.
The spike is visible in net realized profit and loss data, which tracks when coins are sold at a loss versus a profit. Unlike unrealized losses, realized losses represent actual exits — investors selling Bitcoin below their cost basis. These events typically occur during periods of panic, margin pressure, or broad deleveraging.
🚨BREAKING: Bitcoin saw $4.5B in realized losses, the 2nd LARGEST in history. pic.twitter.com/n5xQ0HEfHs
— Coin Bureau (@coinbureau) January 26, 2026
What the On-Chain Data Is Telling Us
Large realized loss spikes tend to cluster around moments of extreme stress, when short-term participants are forced out of positions. That appears consistent with this move, where the market absorbed a heavy wave of loss-taking as price fell sharply from the mid-$90,000s into the $80,000s.
The Technical Picture: RSI Cools, MACD Tries to Turn
The second chart (30-minute BTC/USD on Coinbase) shows the selloff phase clearly, followed by a bounce attempt. At the time of the screenshot, Bitcoin was trading around $87,543 after dipping near the $86,000 area.
Momentum indicators suggest the market is no longer in pure panic mode, but it hasn’t flipped bullish either:
- RSI (14) is sitting around 49.03, which is neutral — not oversold, not overbought. That matters because it shows the dump relieved momentum without immediately triggering a strong oversold snapback. The RSI moving average shown in the chart is around 54.42, which also implies RSI is recovering, but not decisively.
- MACD (12, 26, 9) is showing a potential improvement in momentum: the MACD line is above the signal line (100.50 vs 68.60) and the histogram is positive (31.90). In practical terms, that points to a short-term stabilization / bounce impulse, even if the broader structure remains damaged.
Price structure is still the main issue. The chart shows a clear breakdown from the prior range around $94,000–$96,000, followed by a steep leg down and choppy consolidation near $86,000–$88,000. For bulls, reclaiming the low-$90,000s zone would be a key step toward restoring trend control. For bears, failure to hold the high-$80,000s keeps the door open to another volatility leg.
Why Capitulation Events Matter
While painful in real time, large realized-loss events often act as a market reset — washing out leveraged positioning and transferring coins from weaker hands to stronger ones. That doesn’t guarantee an immediate reversal, but when you combine a historic realized-loss spike with momentum indicators drifting back toward neutral, it often signals that the most aggressive forced selling may be fading.
The near-term outlook now depends on whether Bitcoin can build a base above the recent lows — and whether the market can reclaim key resistance levels without triggering another liquidation cascade.
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Source: https://coindoo.com/market/bitcoin-sees-second-largest-realized-loss-event-as-momentum-resets/