Woofun AI reports that Starkiller closed all short selling positions last month, asserting that the digital asset cycle has bottomed out. The firm highlighted that BTC and ETH have surpassed their 200-day moving averages for the first time since the previous cycle ended, following peak pullbacks of 54% and 70% respectively. Quantitative models indicate volume-driven breakthroughs above the year-to-date VWAP after stabilizing near 50-day moving averages.

Starkiller attributes this reversal to U.S. regulatory clarity and Treasury bond buybacks, which may improve liquidity conditions critical for BTC. While predicting potential short-term adjustments for BTC near $80,000, the firm emphasizes assets with real income streams, specifically citing HYPE, LIT, PUMP, VVV, and DRV. Conversely, tokens lacking fundamental support are viewed as short-selling opportunities, while stablecoins and tokenization sectors remain bullish targets.