Analyst: Bitcoin Sellers Are Getting Exhausted, but a Market Recovery Still Lacks Demand

Nov. 4: CryptoQuant analyst Darkfost said in a post that bitcoin's "seller exhaustion" model shows that sellers are becoming tired. The indicator measures whether sellers still have enough incentive to push prices down by comparing the share of supply in profit with average monthly volatility. It has now fallen back to low levels comparable to bear market periods, consistent with short-term profits having been realized and bitcoin's more than 10% pullback from its previous high.

Darkfost noted that historically such a decline in selling pressure has helped form bottoms, but it does not herald a certain recovery. Even with sellers calm, the market still needs demand to drive it, and bitcoin currently still lacks demand.