The Bull Who Cried Wolf

Given humans’ propensity to overreact to greed and fear, markets have a tendency to get erratic during moments of uncertainty. The panic during sharp market corrections illustrates this point clearly. Negative feedback, even for benign issues, becomes a negative self-fulfilling cycle (or loop) that feeds on itself. Investors seeing others panic, in turn, panic themselves, creating an environment that is difficult to reverse.

Holders of last resort break the negative feedback loop by not panic selling. - Pierre Rochard

BTC shorts at an all-time high
NVT ratio approaching undervalued territory

When Bitcoin`s NVT is high, it indicates that its network valuation is outstripping the value being transmitted on its payment network, this can happen when the network is in high growth and investors are valuing it as a high return investment, or alternatively when the price is in an unsustainable bubble.- Woobull charts

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