Last night, $BTC hit a low of 112,507, and $ETH also dropped from near ATH to 4,060. With ETF funds flowing out and a surge in ETH staking withdrawals, expectations for interest rate cuts have been adjusted; many people are starting to panic, wondering if this is a signal for a market reversal. To conclude, market sentiment has bottomed out, and real opportunities are beginning to emerge. First, let's look at the Fear and Greed Index, the most intuitive sentiment indicator, which has fallen to 45 today, indicating a neutral to fearful sentiment. The last time the Fear Index dropped to this level was during the "black swan" event of the Israel-Iran war. In other words, panic sentiment is nearing its peak. Next, let's examine BTC's data. The STH-MVRV indicator for short-term holders has dropped to 1.03, meaning that short-term positions are left with only 3% profit. History tells us that when this indicator falls below 1, the market is usually at a short-term bottom. Combined with the Fear and Greed Index, BTC's fear sentiment has bottomed out, and a rebound could happen at any time. What about ETH? As the star of this rally, its upward trend remains solid. The ETH-NUPL (Unrealized Profit and Loss) indicator shows that despite a 15% pullback over the past week, most positions have not chosen to take profits, and the main funds are still in the market. The ETH MVRV-Z Score (the deviation between market cap and realized market cap, similar to the price-to-earnings ratio in the stock market) continues to oscillate upward without a significant drop. This indicates that ETH's position structure and fund flow remain healthy, and the trend has not changed. Therefore, I still believe this is a healthy correction, with sentiment at the bottom range, short-term profit-taking in BTC being digested, and ETH remaining solid. So the question arises: When the market dropped last night, did you choose to cut losses and exit, or did you hold firm or even increase your position? Feel free to share your choice in the comments; it might help other anxious friends.
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