Bitcoin (BTC) is experiencing a pause in positive momentum following its recent rally to an all-time high. Signs of seller exhaustion emerge as market liquidity weakens.
Seller Exhaustion
Data indicates that investors have been selling their assets for several weeks, revealing signs of seller exhaustion. Market analysis shows that the Relative Strength Index (RSI) has dropped from 47.4 to 35.8, signaling oversold conditions. Additionally, spot market volumes are decreasing, suggesting reduced liquidity.
ETF Market Dynamics
The options market also shows an 8.4% drop in open interest, indicating declining speculative activity among investors. Bitcoin ETF inflows have decreased by 25% in the past four trading days, reflecting weak institutional interest.
Market Condition and Outlook
Despite reduced selling pressure, the Bitcoin market is testing low liquidity levels below $114,000. Oversold conditions and seller exhaustion may lead to a short-term bounce, but ongoing market fragility leaves room for negative triggers.
In conclusion, while signs of seller exhaustion and the potential for short-term recovery are evident, prevailing risks could lead to further losses for Bitcoin.
