【A local bottom for BTC is forming】

The short-term holders (STH) MVRV indicator for Bitcoin has dropped from $98,000 and 1.35 to the average level, indicating that short-term holders have been taking profits.

An STH MVRV above 1.30-1.35 typically indicates that the market is overheated, often leading to sell-offs.

A decline suggests that some STH have exited their positions.

Returning to the average level signifies the end of a local overheating phase.

After overheating and profit-taking, if demand remains unchanged, the market is expected to enter a sideways trend again. If the STH MVRV drops below 1.0, it indicates the formation of a local bottom.

In January 2024, dropping to the average level (similar to the current situation) would be enough to generate new upward momentum in the market.

Currently, market dynamics are heavily influenced by Trump's decisions. Without negative triggering factors, new momentum is forming now.

So far, the market has remained above $89,000, and there will be a significant buy-in from users once it drops to $90,000.

If the current bottom stays flat for a while longer, it is highly likely to enter a bullish phase.

Uncle Meow says that the quality tokens are only BTC, SOL, BNB; ETH is not currently considered high quality.