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A STH Signal That's Historically Marked The End of Bear Markets "The bear market trend only truly reverses once profits settle in for good STH and then push them to hold their positions and ride the upside." – By @Darkfost_Coc

An analyst on X, cited by cryptoquant_com, claims a signal related to short-term holders (STH), which are investors who hold an asset briefly, has historically marked the end of bear markets. The signal involves profits becoming established for these holders.

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What happened

An analyst on X, cited by cryptoquant_com, claims a signal related to short-term holders (STH), which are investors who hold an asset briefly, has historically marked the end of bear markets. The signal involves profits becoming established for these holders.

Confirmed

Global impact / market context

If short-term holders start making steady profits, they may keep their assets instead of selling. This reduced selling pressure can stabilize prices and help a bear market, a period of falling prices, turn into a new upward trend that attracts more investors.

Analyst inference

The article suggests that investor behavior, specifically whether short-term holders take profits quickly or hold on, is a key gauge for market turning points. Current market direction is uncertain, but this signal could indicate a shift from selling to holding, which often precedes a price recovery.

Analyst inference

What to watch

  1. Watch for the short-term holder profit signal, as described by the analyst, to confirm that profits are becoming established for these specific investors, which historically marks an end to bear markets. Confirmed
  2. Monitor whether short-term holders respond to profitable positions by holding their assets longer, as this behavior would show they are confident in riding the market's upside rather than selling quickly. Proposed
  3. Observe if the established profits for short-term holders translate into a sustained price floor, which could signal a true reversal of the bear market trend and encourage broader investor participation and longer-term holding. Analyst inference

Evidence