On December 21, data analyst Murphy stated that on-chain data observed signs of sentiment recovery. The number of addresses that transitioned from “holding BTC” to “closing all positions” surged from November 13 to 25, during which the price of BTC fell at the fastest rate and the greatest magnitude. The large number of closing positions also reflected the panic and pessimism in market sentiment. However, from December 1 to 18, BTC repeatedly tested the bottom, and the number of closing positions began to decrease, which completely matched the bullish behavior and sentiment changes indicated in the futures market.
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Analysis: on-chain data shows market sentiment is recovering, the number of BTC close all positions addresses is beginning to decrease.
On December 21, data analyst Murphy stated that on-chain data observed signs of sentiment recovery. The number of addresses that transitioned from “holding BTC” to “closing all positions” surged from November 13 to 25, during which the price of BTC fell at the fastest rate and the greatest magnitude. The large number of closing positions also reflected the panic and pessimism in market sentiment. However, from December 1 to 18, BTC repeatedly tested the bottom, and the number of closing positions began to decrease, which completely matched the bullish behavior and sentiment changes indicated in the futures market.