Here’s the uncomfortable part: $BTC buyers from the cycle top have spent about 70% of the past year selling at a loss.
That’s exactly where traders get trapped. A bounce feels like “we’re back,” FOMO kicks in, then underwater holders use the rally as their exit liquidity.
On-chain, this usually shows up as weak hands distributing into strength while stronger holders quietly absorb supply. In plain English: people who bought the top are still taking losses, and every relief rally has been a chance for them to reduce pain, not necessarily a clean trend reversal.
The warning is simple: a green candle doesn’t always mean new demand is leading the move. Sometimes it’s just stressed holders finally getting a better price to sell. This matters for $BTC, and the same behavior often spills into majors like $ETH and $SOL when market confidence is shaky.
So the key question is whether absorption by stronger hands is enough to overpower that sell pressure from trapped buyers. What are you watching here?
#Bitcoin #CryptoTrading #OnChainData
That’s exactly where traders get trapped. A bounce feels like “we’re back,” FOMO kicks in, then underwater holders use the rally as their exit liquidity.
On-chain, this usually shows up as weak hands distributing into strength while stronger holders quietly absorb supply. In plain English: people who bought the top are still taking losses, and every relief rally has been a chance for them to reduce pain, not necessarily a clean trend reversal.
The warning is simple: a green candle doesn’t always mean new demand is leading the move. Sometimes it’s just stressed holders finally getting a better price to sell. This matters for $BTC, and the same behavior often spills into majors like $ETH and $SOL when market confidence is shaky.
So the key question is whether absorption by stronger hands is enough to overpower that sell pressure from trapped buyers. What are you watching here?
#Bitcoin #CryptoTrading #OnChainData