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Bitcoin Stress Metric Signals Potential Market Bottom

Bitcoin Stress Metric Signals Potential Market Bottom

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Bitcoin's 'short-term holder stress' metric has declined to levels last observed in 2018, indicating a significant reduction in selling pressure from recent buyers. This technical indicator suggests that the market may have experienced capitulation, a phase where weak hands exit positions, often preceding a potential reversal. Historical data shows similar readings in 2018 preceded a substantial rally, providing a compelling reference point for current market conditions.

The current low stress levels among short-term holders imply reduced panic selling and could signal accumulation by long-term investors. While past performance doesn't guarantee future results, this metric's alignment with historical bottom patterns warrants close monitoring. Market participants should watch for confirmation through price action and volume trends to validate this potential turning point.

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