Analysis: Bitcoin sellers' selling pressure has reached the extreme of a bear market, a bottom may be forming but a reversal still requires new demand

CryptoQuant analyst Darkfost stated that on-chain data shows that the "seller exhaustion model" indicator for Bitcoin has dropped to its lowest level since the bear market began. This model measures whether sellers still have enough chips to continue pushing prices down by comparing the market's profitable supply ratio with the average monthly volatility.

As BTC has corrected more than 10% from its previous high, short-term profit-taking in the market has basically concluded, and selling momentum has significantly weakened. Historically, this sharp decline in selling pressure typically aids in the formation of market bottoms. The analyst also warned that reduced selling pressure does not equate to an immediate market rebound. The current core contradiction lies in the fact that although sellers have calmed down, the market still lacks sufficient "new demand" to drive prices upward. Until substantial buying capital returns, Bitcoin's upward potential remains limited.