Btc

Under what circumstances will Bitcoin lead to a reversal?

To confirm a reversal in Bitcoin, four key conditions must be met.

First, the buy-sell ratio in the order book has turned positive and needs to maintain this state. In the past three instances of reaching local bottoms, this ratio has shown a bullish trend.

Second, the peak slippage must reach above 150. Whenever BTC's slippage exceeds this value, the price tends to rise. This could be a sign of increased market volatility.

Third, the proportion of long positions in real retail accounts needs to completely reverse. As of now, this value stands at 61.95%. Historically, readings above 60% indicate a bullish turning point—this is a signal for the formation of a local bottom.

Finally, the price needs to reclaim the EMA50 and maintain itself above it.

However, during this adjustment period, whales and institutional investors have begun to take action again. On-chain trackers noted that whales purchased 200 BTC, worth about 23 million USD, indicating confidence in buying the dip.

The decline of Bitcoin is aimed at transferring Bitcoin from weaker hands to stronger hands.

The supply of Bitcoin held by the first batch of buyers is close to 5 million coins. This reinforces the view that long-term holders and large players are actively employing an average cost strategy to buy Bitcoin on dips.

Overall, these trends suggest early signs of a reversal. However, if BTC fails to hold its local bottom, confirming this is crucial to avoid falling into a bull market trap.

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