Bitfinex Spots "Seller Exhaustion" – Bitcoin Primed for Major Relief Rally

Bitcoin's brutal sell-off may have finally run out of steam. A key metric from crypto exchange Bitfinex is flashing a signal not seen in weeks: seller exhaustion.

The Setup: When Bears Get Tired

Markets don't move in straight lines—not even down. After relentless pressure, the pool of traders willing to sell at lower prices dries up. That's exhaustion. It doesn't guarantee a moon mission, but it often sets the stage for a powerful counter-punch. Bitfinex's on-chain analysts are now pointing to precisely that scenario unfolding on the Bitcoin charts.

The Implication: Fuel for the Bounce

With weak hands flushed out, even modest buying pressure can trigger a disproportionate move upward. It's a classic market mechanics play. The remaining holders are typically more convicted, creating a sturdier foundation. Think of it as the market taking a deep breath before the push-back begins.

The Bottom Line: A Traders' Crossroads

This isn't a fundamental call on Bitcoin's long-term value—it's a tactical alert. Exhaustion signals are for those watching the tape, not the headlines. It suggests the path of least resistance may be shifting, at least temporarily. For the crypto faithful, it's a potential light after a long tunnel. For everyone else, it's another reminder that in crypto, the only constant is violent momentum—both ways. Just ask any portfolio manager who thought "diversification" meant holding both Bitcoin and Ethereum.

Bitcoin Jumps Toward $94K After $19B Leverage Flush, Bitfinex Says

The comment preceded a rally on Wednesday that briefly carried Bitcoin toward $94,000. At the time of publication, the asset was trading near $91,440, according to CoinMarketCap.

Bitfinex also argued the market is now operating on a “leaner leverage base,” reducing the risk of sweeping liquidations.

That shift follows a violent correction in October, when roughly $19 billion was flushed out of what traders had widely described as an overleveraged setup.

The rout triggered a broader downturn that pushed bitcoin to lows around $82,000 in late November.

With excess risk wrung out, the exchange said the remaining leverage appears more contained, easing pressure on prices and improving the odds of a steadier consolidation phase.

The late-year bounce is also feeding debate over whether Bitcoin’s well-known four-year cycle is losing relevance.

Under older models, the cycle’s top might already have passed in October, when prices printed record highs NEAR $125,100.

However, the recent rebound has complicated that narrative, with some market watchers arguing the structure of this cycle looks different from its predecessors.

Seasonal patterns offer little clarity. December has historically been one of Bitcoin’s quieter months, delivering an average gain of 4.69% since 2013, figures from CoinGlass show.

Notably this year has already broken with tradition. November, typically the strongest month, closed with a steep loss of more than 17%.

Several analysts remain constructive. Market commentator PlanC wrote on X that “this Bitcoin cycle is NOT like past cycles,” while trader Quinten Francois said the asset is now “closer to the bottom than to the top.”

This Bitcoin cycle is NOT like past cycles. I have been warning you all and explaining this for well over a year now. Hopefully, you were paying attention.

Cathie Wood Calls Liquidity Rebound for Crypto

As reported, ARK Invest CEO Cathie Wood has forecasted that the liquidity squeeze hitting crypto and AI markets will reverse within weeks, driven by three Federal Reserve policy shifts expected before year-end.

Her firm continues aggressively buying crypto equities during the downturn, deploying over $93 million in a single day this week across beaten-down digital asset stocks.

Speaking during ARK’s November market webinar, she identified three temporary liquidity constraints she expects to ease rapidly through Federal Reserve action and reopened government spending.

Wood expects the Federal Reserve to end quantitative tightening at its December 10 meeting, immediately easing one pressure point.

The government shutdown that caused the Treasury General Account cash buildup has concluded, returning funds to circulation.