Although current levels of realized losses confirm that the market is in deep bearish territory, they have not yet reached the level typically associated with a definitive market bottom.
After intense selling pressure pushed Bitcoin (BTC) below $60,000 two weeks ago, analysts pointed to on chain data suggesting that sellers may be nearing exhaustion. This view is further supported by improving macroeconomic conditions.
Analysts at Bitfinex believe the market is moving into a late stage capitulation phase rather than a broader distribution cycle. This indicates sustained selling pressure from previous Bitcoin buyers, including ETF investors and treasury companies.
Bitcoin Sellers Are Reaching Exhaustion
Recent Bitcoin buyers began selling aggressively after BTC dropped below $75,000.
Since then, demand for Bitcoin has shown little sensitivity to price changes. These investors are realizing losses at an increasing rate, highlighted by $1.35 billion in daily realized losses during the first trading week of June.
As selling pressure continues, analysts say the market appears to be entering a transition phase that reflects a typical post liquidation structure. This type of market behavior often emerges after the main wave of forced selling from distressed investors starts to fade.
Even though current realized losses clearly indicate deep bearish conditions, they still fall short of the levels needed to confirm a market bottom. Analysts believe future demand will determine whether the current consolidation becomes a strong support zone or simply a temporary pause before another decline.
Analysts explained that market activity shows seller exhaustion occurring alongside improving macro conditions, which differs from genuine buying demand. Price behavior under these conditions can vary significantly. As a result, despite the recent recovery, bulls still face major obstacles before a sustained uptrend can develop.
Demand Remains the Key Driver
Reflecting on market movements from June 5, Bitfinex analysts believe crypto market lows may have anticipated a wider selloff across global risk assets. For the first time in six years, correlations between risk assets weakened, with commodities, equities, and yields all moving lower.
Although most risk assets, including Bitcoin, have recovered, the U.S. macro environment continues to be shaped by inflation, energy markets, and monetary policy. There is also cautious optimism due to easing geopolitical tensions, especially signs of a possible agreement between the United States and Iran. If such an agreement is finalized, it could influence broader macro conditions that affect digital asset markets.
Regardless of geopolitical developments, liquidity remains a more important factor than traditional safe haven narratives. As a result, demand continues to be Bitcoin’s biggest challenge in achieving a sustained upward rally.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
