Another issue is liquidity. Back in the day you could open a $1M long or short on Bitcoin or Ethereum and price didn't move by much. Now its very difficult opening a position this large without moving the markets. Liquidity is drying up. Look at all the spikes on all the charts.
You can hedge 1 mln $ worth bitcoin on binance futures moving price by not more than 1$. Than slowly move position to spot by selling on futures and buying on spot (you can do it slowly, using moments when BTC spot price is lower than BTC futures). That way you can instantly have exposure to price change of BTC without moving price by opening big positions (but its more like a tip for 100 mln $ trade). Futures liquidity is much bigger than spot.
But even on binance spot you can buy 10 mil $ worth BTC moving price by 0.1-0.5% - its less than trading fees on some exchanges.
But yea. I agree that now is the best time to load a bag. Maybe not balls dip but at least 50% of crypto investment budget.
As a reaction to your title, capitulation did mean crashing because it is the point where resistance gives in to the pressure or demand. Just like in a trading market. When the support (resistance to price crash) gave in and removed, the price will automatically crash to the next support level. So Bitcoin capitulation refers to the state of Bitcoin where there is a strong selling activity, where investors give up their positions and sell their holdings as quickly as possible. [1]
There may be many factors that affect these investors to give up their position and sell that trigger this capitulation, and some of the examples are given by you @OP.
We just hit new low breaking support at 18k. So yea. It can be called capitulation.