1. The first chart shows that after Long-Term Holders (LTHs) entered a loss zone during the 2021 cycle, downside momentum accelerated significantly.
2. The second chart indicates that as of today, Long-Term Holders have once again moved into a loss phase.
- Conclusion
Historical precedent from 2021 suggests that LTH loss entry often marked the beginning of panic-driven selling and the transition into a sustained bearish phase.
Therefore, premature positioning before clear trend confirmation may carry elevated downside risk at current levels.
Written by COINDREAM