#Bitcoin just hit panic levels not seen since FTX.But behind the $65k dip, a "seller exhaustion" phase is emerging. We’ve analyzed the on-chain data, whale movements, and why this "industry purge" might be the ultimate contrarian play.Don't trade blind. Full report here👉https://t.co/2ZTRuSoQ2i ...

Core Insights - Bitcoin experienced a significant rebound, climbing nearly 8% in a single day, indicating potential signs of a local bottom forming [1][8] - Bitfinex noted "seller exhaustion" in the market following a $19 billion leverage flush, which has reduced market risk and created conditions for stabilization [2][4][8] - The market is now operating on a "leaner leverage base," which decreases the risk of sweeping liquidations and eases pressure on prices [3][4] Market Dynamics - The recent rally briefly pushed Bitcoin toward $94,000, with the asset trading near $91,440 at the time of publication [3] - A violent correction in October led to a significant flush of leverage, which contributed to a broader downturn that saw Bitcoin drop to lows around $82,000 in late November [4] - Analysts are divided on whether Bitcoin's four-year cycle is losing relevance, with some suggesting that the current cycle appears different from previous ones [5][8] Seasonal Trends - Historical data shows December has been a quieter month for Bitcoin, with an average gain of 4.69% since 2013, although November this year closed with a steep loss of over 17% [6] - Market commentators express differing views on the current cycle, with some asserting that it does not resemble past cycles [7][8] Future Outlook - ARK Invest CEO Cathie Wood predicts a liquidity rebound for crypto markets, driven by anticipated Federal Reserve policy shifts before year-end [7]

Core Insights - Approximately 1/3 of Bitcoin's circulating supply is currently held at a loss, indicating significant market stress as the asset faces downward pressure in November [1][2] - Despite the current decline, experts express cautious optimism, suggesting that the market may be nearing a bottom and could signal a potential recovery [1][2] Market Performance - Bitcoin has experienced a 17% decline over the past month, briefly falling below the $100,000 mark during the November crypto crash, resulting in a substantial portion of the market facing unrealized losses [2] - Data indicates that over 28% of Bitcoin's circulating supply is held at a loss, reflecting stress for buyers who purchased at higher prices [2][4] Historical Context - Historical trends suggest that high levels of supply held at a loss often coincide with local market bottoms rather than further breakdowns during bullish cycles [3][4] - Analyst MorenoDV notes that such conditions can lead to seller exhaustion, where prolonged declines push long-term holders to take profits and newer investors to sell at break-even points [4][6] Psychological Factors - The current market environment reflects a balance between fear and patience, which could either lead to further selling or renewed conviction among long-term investors [5][6] - If sentiment does not recover and holders continue to de-risk, it may signal the end of favorable market conditions, while extreme fear could lead to a durable bottom and the next accumulation phase [6] On-Chain Data Insights - Recent on-chain data shows Bitcoin's Net Taker Volume fell to -53 million on an hourly basis, indicating strong selling activity but also suggesting potential seller exhaustion as selling pressure reaches extreme levels [7] - Analysts point to signs of a classic exhaustion phase, where positive developments fail to lift prices and negative news triggers immediate sell-offs, indicating weakening buying momentum [8]