Onchain analytics firm Glassnode says bitcoin’s selling pressure is fading, signaling potential seller exhaustion, but the firm cautions that it is too early to declare a definitive market bottom.
Selling Pressure Appears to Ease
Glassnode reported this week that activity on the Bitcoin network points to sellers losing momentum. Periods of seller exhaustion have historically aligned with the later stages of market drawdowns, when capitulation subsides and volatility begins to compress.
Such phases can precede stabilization as forced selling diminishes and market participants become less willing to sell at lower prices. However, these signals alone do not guarantee an immediate reversal.
No Confirmation of a Bottom
Despite the softer selling, Glassnode stopped short of confirming that a cyclical bottom is in. According to the firm, stronger confirmation typically requires evidence of renewed demand and a sustained shift in trend—conditions that are not yet firmly established.
Market bottoms are often recognized in hindsight, after a period of consolidation and higher lows, alongside improving onchain activity that indicates fresh capital and confidence returning to the network.
What to Watch
- Signs of improving demand, including increased network activity and accumulation behavior.
- Reduced exchange selling pressure and a decline in realized losses.
- Sustained price stabilization or higher lows that indicate a trend shift.
Glassnode’s assessment underscores a cooling in downside momentum but emphasizes the need for further confirmation before calling a definitive turning point for bitcoin.