Seller Exhaustion In Bitcoin Points Towards End Of Bear Market
Available data suggest that the seller exhaustion in Bitcoin (BTC) has hit a 5-year low and is similar to what we see during the end of a bear market. So, in short, the bear market in the Bitcoin (BTC) might be coming to an end, which will also end the crypto winter.
This data was derived from on-chain analysis, which suggests that a price bottom is forming in the BTC. Furthermore, the Bitcoin network is also facing low volatility along with on-chain losses, which also points toward the exhaustion of sellers. The data also suggests that the value of seller exhaustion is at an all-time low, along with transaction profiability.
Overall, the current trends in Bitcoin suggest that whenever we see signs like these, it usually leads to a bullish trend. And before we can get to that bullish trend, the current bearish trend will have to end.
BTC Technical Analysis Shows A Bottom Is Forming
If we look at the charts of Bitcoin (BTC), it does appear that the digital asset is attempting to form a bottom around the $19,000 - $20,000 region. However, we have already seen how bulls always fail to maintain their momentum and are eventually pushed back to the $19K - $20K range.
So based on the on-chain analysis and the technical analysis, it does appear that Bitcoin Bulls might be staging a comeback.
But if we zoom out on the daily chart of Bitcoin (BTC), it becomes clear that Bitcoin is at a multi-year low, and it would take a lot more than some fancy numbers spewed out by the experts and analysts. For starters, Bitcoin will have to show bullish momentum on the daily, weekly, and monthly charts to establish any credibility.
Otherwise, any attempt by Bitcoin (BTC) to move up will appear as if it is yet another trap set by the bears to push the prices down once again!