Bitcoin bottom signal that preceded 1,900% rally flashes again

💡 DMK Insight

Bitcoin’s ‘short-term holder stress’ metric hitting 2018 lows is a big deal for traders right now. This suggests that many short-term holders have either sold off or are holding through the pain, indicating a potential market capitulation. Historically, such stress levels have marked significant turning points, often signaling a bottom. If you’re looking at trading strategies, this could be a cue for long positions, especially if Bitcoin starts to stabilize around current levels. Watch for resistance around recent highs to confirm any bullish momentum. But don’t ignore the flip side—if the market doesn’t bounce back soon, we could see further selling pressure from those still in the red. Keep an eye on broader market sentiment and related assets like Ethereum, which often follows Bitcoin’s lead. The next few weeks will be crucial; monitor the daily close above key support levels to gauge whether this capitulation leads to a genuine recovery or just a temporary pause.