In a world where cryptocurrency markets move faster than expectations, the Behavior-Weighted Trend Signal (BWTS) stands out as one of the rare tools capable of reading the true pulse of the market, not just through price, but through the behavior of investors themselves.
This indicator does not just track selling at a loss, but also reveals moments of complete capitulation by long-term investors who often drive the major trends of Bitcoin.
Analyst Murphy points out that the BWTS is like a transparent lens through which we see the difference between normal selling and forced selling resulting from panic. By comparing the red BWTS line with the black Bitcoin price line, moments of divergence between them can be observed—moments that have often been the first seed for strong rebound waves.
For example, after the collapse of Luna in May 2022, the BWTS indicator returned to the zero line but then diverged sharply from the price movement again. This double divergence was not a recovery signal… but an early announcement of the beginning of deeper phases of the bear market.
Today, we see a similar pattern repeating. The BWTS reflects a state of calming in panic selling, indicating that the market may be in a rebalancing phase before a potential rebound. As long as this divergence is not broken, the reading of the indicator remains clear:
The current rebound may not be over yet.
Understanding such indicators not only helps the investor read the market, but also gives them the ability to see beyond the noise, and learn to differentiate between real fear and the hidden opportunities behind it.
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