A critical moment is approaching.
By observing the profit and loss ratio of short-term holders, one can determine whether the current market is at a turning point for entering a bull market.
When the profit and loss ratio is negative (red), it indicates that the market is in an undervalued range and is very susceptible to downward pressure.
However, from January to April, after experiencing multiple panic sell-offs, the profit and loss ratio of short-term holders is turning from negative to positive, gradually approaching 1.
Data shows:
📉 Negative value → Best accumulation period
📈 Positive value → Maximum upward period
The downward momentum has basically been fully released.
