Capitulation is a term used to describe a time of heavy selling activity during which investors abandon their positions and sell their holdings as quickly as possible. Because sell orders peak at a considerably higher-than-average level during a moment of capitulation, the asset price quickly falls until a bottom is established.

Capitulation is also commonly referred to as panic selling. 

When the panic selling period ends, signaling the end of the capitulation, there may be a period of consolidation (sideways price fluctuations) or an upward trend, which could signal the start of a bull market.

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