On December 6th, Murphy, an on-chain analyst, said that short-term behavior-weighted trend signals (BWTS) can be used to identify true precipitation chip selling and trend capitulation behavior. This indicator considers not only whether investors are selling BTC at a loss, but also can be used to measure "holding for a period of time" forced to cut meat chips.
Past data shows that whenever BWTS (red line) and BTC price (black line) go out of the divergence pattern, it means that the panic trade gradually clears, and often ushers in a wave of rebound or reversal. After the Luna thunderstorm in May 2022, BWTS, which had already returned to the zero axis, deviated sharply again, breaking the previous divergence pattern. The rebound eventually did not become a reversal, but further entered the deep bear stage. The current pattern of BWTS is similar to before, which can be interpreted as having the conditions for a rebound, or before the divergence is broken, it can be considered that the rebound has not ended.
Analysts: The inflection point of market sentiment is quietly approaching, and the BWTS pattern shows that it has the conditions for a rebound
2025-12-06 09:12:12
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