Thank you for sharing

The Behavior-Weighted Trend Signal (BWTS) can help us identify the true selling pressure of accumulated chips and trend capitulation behavior. This is because it considers not only whether investors are selling BTC at a loss, but more importantly, the chips that have been held for a period of time being forced to sell at a loss.

Therefore, looking at past data, whenever the BWTS (red line) and BTC price (black line) show a divergence pattern, it signifies the gradual clearing of panic selling. This is often followed by a rebound or reversal trend.

However, after May 2022, the Luna crash caused the BWTS, which had already returned to the zero axis, to deviate significantly again, breaking the previous divergence pattern. The rebound ultimately did not turn into a reversal but rather further entered a deep bear phase (as shown in Figure 2).