Trader: Short-term holders of BTC may indicate an overheated supply or signal the formation of a market bottom

Trader Killa stated on platform X that the supply of short-term holders (STH) of Bitcoin has recently reached "overheated" levels, a situation similar to the market's behavior after breaking away from the macro bottom in 2023, which could be another signal of a market bottom forming.

Killa pointed out that after the supply of Bitcoin short-term holders reached similar highs in 2023, the BTC price continued to rise and maintained an upward trend in higher time frame (HTF) trends. The current market structure is quite similar to previous cycles, and investors should not overly rely on the fear and greed index to judge market direction. Killa indicated that market sentiment may remain irrational in the long term, and short-term sentiment indicators do not necessarily reflect long-term trends.