Adjusted Trend Signal by Behavior Points to Possible Recovery of Bitcoin
According to information from BlockBeats, on-chain analyst Murphy highlighted the importance of the Behavior-Weighted Trend Signal (BWTS) as a tool to identify the real intensity of selling pressure from long-term holders and understand moments of trend capitulation. This indicator not only observes when investors are making sales at a loss but also identifies forced liquidations of BTC that have been held for long periods.
Historically, when the BWTS (red line) diverges from the price movement of Bitcoin (black line), it usually indicates a phase of "wash" of panic selling — often accompanied by a bounce or change in direction in the market. After the collapse of Luna in May 2022, the BWTS, which had returned to zero, began to diverge strongly again, breaking the previous pattern and triggering an even deeper bear market instead of a positive return.
At the moment, the behavior of the BWTS resembles patterns seen previously, suggesting that there is room for a new recovery. As long as this divergence is not broken, it is possible to interpret that the upward movement has not yet reached its end.
