Bitcoin has seen a 3.22% rally recently, indicating growing market confidence. Signs of seller fatigue are also emerging, with profits shrinking and exhaustion setting in among market participants, hinting at a potential rebound. Previous capitulation phases have been followed by renewed buying energy, leading to the possibility of a major rebound in the near future.
Metrics such as Binary Coin Days Destroyed (CDD) suggest that long-term holders have joined the selling cohort, possibly to lock in gains or cut losses. However, the pace of selling has been slowing down, indicating that seller fatigue is present and a relief rally could be on the horizon. Institutional netflows have dried up, with only $1 million in Bitcoin sold recently, down from a $176.72 million four-day average, showing a return of confidence among big-money players.
CryptoQuant’s data on the spot market reveals a new trend where netflows have flipped negative, signaling accumulation of Bitcoin into private wallets and away from exchanges. This behavior has led to the purchase of 1,959 BTC worth around $162 million at an average buy price of $83,000, helping to soak up the remaining sell pressure and potentially leading to a breakout in the market. Overall, the market seems to be gearing up for a significant rally following the exhaustion of sellers and increased confidence among institutional investors.
