As expected, short-term investors are starting to realize losses on-chain. ✅
After entering local euphoria above $85K, these investors are beginning to show signs of local capitulation, which generally supports interesting short-term price floors.
This drop hasn’t yet generated a major spike in realized losses, so if there’s no spot buying re-entry and increase in demand, it could persist for a few more days.
Maybe now you understand why I posted earlier about being cautious of FOMO.
It’s rare, but it happens in every microstructure.
Retail traders follow trends late because they trade on news and narratives, not data.
They’re late to buy upward moves and leave far too late during price corrections.
Then they blame “the market.”
They blame “whales manipulating the market.”
We’re forming an interesting re-entry pattern, with SOPR falling below 1.
In the coming days, we may hear “analysts” saying the bear market is back, and that they’re going to sell so they can buy below $60K at the “real bottom.”
That will be the time to get optimistic again.
Buy the blood
Were you paying attention?
After entering local euphoria above $85K, these investors are beginning to show signs of local capitulation, which generally supports interesting short-term price floors.
This drop hasn’t yet generated a major spike in realized losses, so if there’s no spot buying re-entry and increase in demand, it could persist for a few more days.
Maybe now you understand why I posted earlier about being cautious of FOMO.
It’s rare, but it happens in every microstructure.
Retail traders follow trends late because they trade on news and narratives, not data.
They’re late to buy upward moves and leave far too late during price corrections.
Then they blame “the market.”
They blame “whales manipulating the market.”
We’re forming an interesting re-entry pattern, with SOPR falling below 1.
In the coming days, we may hear “analysts” saying the bear market is back, and that they’re going to sell so they can buy below $60K at the “real bottom.”
That will be the time to get optimistic again.
Buy the blood
Were you paying attention?