What do on-chain fear indicators reveal about potential stabilization points in the Bitcoin market?
Why is this the correct answer?
This is correct because on-chain fear indicators analyze blockchain data such as transaction volumes and wallet behavior to identify areas where selling pressure is easing. When these models show extreme fear, they suggest that many fear-motivated sellers have already exited. This often marks potential stabilization points, where buying and selling balance out and prices may begin to recover.
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