Analysis: A turning point in market sentiment is quietly approaching; the BWTS chart pattern indicates conditions for a rebound.

According to Mars Finance, on December 6th, on-chain data analyst Murphy stated that the Behavior-Weighted Trend Signal (BWTS) can be used to identify genuine selling pressure and trend capitulation. This indicator considers not only whether investors are selling BTC at a loss, but also the amount of BTC held for a period of time before being forced to sell at a loss. Historical data shows that whenever BWTS (red line) and BTC price (black line) show a divergence, it signifies the gradual clearing of panic selling, often leading to a rebound or reversal. After the Luna collapse in May 2022, BWTS, which had already returned to the zero line, deviated significantly again, breaking the previous divergence pattern. The rebound ultimately failed to become a reversal, instead leading to a deeper bear market. The current BWTS pattern is similar to the previous one, which can be interpreted as having the conditions for a rebound, or in other words, as long as the divergence is not broken, the rebound can be considered not yet over.