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Analysis: Market Sentiment Turning Quietly, BWTS Pattern Shows Rebound Conditions
Summary: According to on-chain data analyst Murphy, the Behavior-Weighted Trend Signal (BWTS) can be used to identify true selling pressure and trend surrender behavior. This indicator not only considers whether investors are selling BTC at a loss, but also measures chips that have been forced to cut for a period of time. Historical data shows that ...
According to on-chain data analyst Murphy, the Behavior-Weighted Trend Signal (BWTS) can be used to identify true selling pressure and trend surrender behavior. This indicator not only considers whether investors are selling BTC at a loss, but also measures chips that have been forced to cut for a period of time. Historical data shows that whenever the BWTS (red line) and BTC price (black line) diverge, it indicates the gradual clearing of panic selling, often leading to a rebound or reversal trend. After the Luna crash in May 2022, the BWTS, which had already returned to the zero axis, deviated significantly again, breaking the previous divergence pattern. The rebound did not turn into a reversal, but further entered a deep bear market phase. The current pattern of BWTS is similar to before, indicating potential rebound conditions, or until the divergence is broken, the rebound may not be over yet.
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Link: Analysis: Market Sentiment Turning Quietly, BWTS Pattern Shows Rebound Conditions [Copy]
