Analysis: BTC "Seller Exhaustion Index" retests cycle's second-lowest point, bear market bottom may be confirmed

BlockBeats news, November 2 — Market analyst Murphy stated that Bitcoin's "Seller Exhaustion Index" may be showing its second signal point. On August 11 of this year, the "BTC Seller Exhaustion Index" provided the last precise bottom-fishing guide before the market rally began. This indicator simultaneously measures low volatility and high losses; when both conditions are met at the same time, a signal is triggered. Historically, only during periods at the cycle bottom does the Seller Exhaustion Index have the opportunity to fall into the "extreme exhaustion zone" (red zone). Once the bottom structure is exited, it is difficult to reappear. That is, afterward, even if the price is lower, the index is not lower (marked 1 and 2).

Therefore, if traders accidentally miss the lowest point 1 during a cycle, they should try their best to capture the second-lowest point 2. As previously stated, the certainty of the second-lowest point 2 is higher than that of the lowest point 1, but the risk is that the price at 2 may also be higher than at 1. Recently, "second-lowest point 2" has appeared. A few days ago, when the BTC price pulled back to $77,000, the Seller Exhaustion Index formed the second-lowest point of this cycle, only higher than in August of this year. The analyst reminds that the analysis is for reference only and is not direct investment advice.