Bitcoin Seller Pressure Drops to Bear Market Low, Reversal Requires New Demand

On November 4, on-chain data showed that the Bitcoin "seller exhaustion model" indicator has fallen to its lowest level since the bear market began. This model measures whether sellers have enough chips to continue pushing prices down by comparing the ratio of profitable supply in the market to the average monthly volatility. As BTC has corrected more than 10% from its previous high, short-term profit-taking has largely concluded, and selling momentum has significantly weakened. Historical patterns indicate that a sharp decline in selling pressure often aids in the formation of market bottoms. Analysts warn that reduced selling pressure does not mean the market will immediately rebound. The current core issue is that, although sellers have calmed down, the market still lacks sufficient "new demand" to drive prices upward. Until buying capital returns to previous levels, Bitcoin's upside potential remains limited.

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