Bitcoin sellers are beginning to run out of momentum, but not yet close to the levels seen in the previous bear markets.
In the last three bear markets, bitcoin selling activity usually bottomed at an important exhaustion zone before prices turned upward, based on Glassnode’s Seller Exhaustion Constant (30d).
The on-chain analytics firm posted this week, saying “sellers are getting exhausted,” but admits that the “historical bottoming signature has not confirmed yet.”
The implication is that a shift in the current bearish market cycle is imminent. However, there is still a chance of more drawdowns in bitcoin prices.
At the time of writing, BTC was trading at $64,042. The price has been ranging between $61,000 and $66,000 since July, even with the bearish news of Strategy selling more bitcoin to raise its USD reserve.
More recently, Strategy sold 1,690 bitcoin to raise $108.6 million, according to a filing on Monday. The firm now holds 840,447 BTC, but still the largest among other publicly traded bitcoin treasury firms.
BlackRock confirms a noticeable shift in sentiment
As sellers are becoming exhausted, market sentiment is beginning to improve as well.
BlackRock’s Head of Digital Assets, Robert Mitchnick, said this week that they have seen a noticeable change in sentiment over the past month, with BlackRock’s iShares Bitcoin Trust(IBIT)returning a $227.63 million inflow in July.
“We have seen sentiment turn in a noticeable but subtle way the last month or so,” Mitchnick said.
BlackRock’s IBIT already sees $690 million in capital inflows so far in August.
