Part 6/12:
Market Distribution and Holder Behavior: Recent analysis shows most retail investors and smaller holders have been distributing their holdings, indicating capitulation. Interestingly, only the “sharks” or larger players are holding firm, which might suggest that the weak hands have been squeezed out.
The “Foundation” for a Local Bottom: A compelling indicator involves MVRV ratios of short-term holders and the levels of realized losses. When these metrics reach certain thresholds—such as prices slightly below the average purchase price of short-term holders and heightened panic selling—markets tend to be near local lows. Currently, these conditions are aligning, hinting at a potential bottom.