Bitcoin Sellers' Exhaustion Sparks Market Volatility as $65K Level Looms

The Bitcoin market has been stuck in a narrow range since early August, oscillating between $63,500 and $65,000. However, data suggests that sellers are gradually losing their ability to push prices lower.

According to Glassnode's analysis, the market is currently 'compressed' rather than in capitulation. Sellers seem to be exhausting themselves, but this does not necessarily confirm a lasting bottom.

A Bitfinex report found that 54.6% of circulating Bitcoin supply is currently in profit, suggesting that the average holder is near their break-even point. Historically, this has accompanied the end of corrections rather than their start.

Institutional demand remains strong, with bitcoin spot ETFs recording $144.67 million in outflows after five consecutive days of inflows. This outflow does not indicate a disappearance of institutional demand, but it is a sign that prices are still sensitive to market movements.