Report: Bitcoin Shows Signs of "Seller Exhaustion," Year-End Rebound Foundation Gradually Strengthening

Bitcoin staged a strong rebound this week, with a single-day gain approaching 8%. The latest industry report indicates that after intense deleveraging and a sell-off by short-term holders, Bitcoin is showing signs of “seller exhaustion,” and the market is expected to enter a stabilization and rebound phase.

According to the report, approximately $1.9 billion in leverage has been released over the past few weeks, effectively “resetting” the market from high leverage risk. During this process, Bitcoin briefly dropped to around $82,000, but as risks were cleared, leverage levels are now lower, market pressures have eased, and the threat of large-scale liquidations has significantly decreased.

This week, Bitcoin rebounded to nearly $94,000 and is currently holding above $91,000. Exchanges noted, “Extreme deleveraging, capitulation selling, and seller exhaustion have collectively created the conditions for a market reversal.”

Some analysts believe this trend may signal a structural change in Bitcoin’s four-year cycle. Although November saw an unusual drop of over 17%, the rebound in December has reignited discussions about whether the cycle top has yet to arrive.

Several market observers remain bullish on Bitcoin. Analyst PlanC stated, “This cycle is completely different from previous ones,” while trader Quinten Francois believes Bitcoin is “closer to the bottom than the top” at the moment.

Meanwhile, ARK Invest CEO Cathie Wood expects crypto market liquidity to recover within weeks. She pointed out that the Federal Reserve may end quantitative tightening on December 10, and combined with resumed government spending, this will significantly ease liquidity pressures. ARK continued to increase its positions during the downturn, buying over $93 million worth of crypto-related stocks in a single day this week.

Overall, with excessive leverage cleared, selling pressure reduced, and institutions repositioning, Bitcoin has the conditions for further rebound by the end of the year.