Analyst: On-chain data shows signs of market sentiment recovery, the number of BTC liquidation addresses begins to decrease.

Analyst Murphy stated that on-chain data has observed signs of sentiment recovery. The red area in the chart below indicates the number of addresses that transitioned from "holding BTC" to "fully liquidated" in the past 30 days. That is, addresses that had a balance greater than 0 thirty days ago but have now been fully liquidated. It reflects investors choosing to completely exit their positions under the dual pressure of price and time.

From November 13 to 25, the number of addresses liquidating BTC surged. This period also coincided with the fastest and largest decline in BTC prices, and the large number of liquidation addresses reflects the panic and pessimism in market sentiment. However, during the period from December 1 to 18, as BTC repeatedly tested the lows, the number of liquidation addresses began to decrease.