Computing Power fell by 4%, and the crypto world has once again fallen into panic. Every time the market has a bit of turbulence, you can always see a bunch of people frantically interpreting certain data— but to be honest, playing like this is just like rolling dice and hoping for luck.

First, let's clarify one thing: a fall in Computing Power does not equal a bottom. What truly indicates a bottom is a combined performance of the fall in Computing Power along with two other data points. Which two? Net outflow amount of miners and changes in exchange balances.

**What are miners doing?**

Miners are the largest source of selling pressure in the market. If the Computing Power falls and miners are still selling aggressively, that would be truly dangerous. But the situation is different now. In the past 7 days, the net outflow of Bitcoin from miners was only 1,200 coins, a decrease of 68% compared to the previous week. What does this mean? Miners are no longer panicking. They are no longer fearfully dumping their coins; instead, they are starting to hold on to them—this signal is far more valuable than the Computing Power numbers themselves.

**Retail investors are turning**

Just look at how the Bitcoin balance of the exchange changes. Whether retail investors are panicking or not, the wallets will tell. Those who are scared transfer their coins to the exchange, preparing to cut losses; those who are optimistic withdraw their coins and hold them in wallets for the long term. In the last 10 days, the balance on mainstream platforms has decreased by 2.3%. What does this mean? Off-market funds are entering the market, while on-market holders are reducing panic selling.

Stop scaring yourself by focusing on just one indicator. Once these three signals align: miners holding back sales + retail investors being liquidated + outflows from exchanges, the bottom signal will truly emerge.