Analysts at XWIN report that Bitcoin is showing signs of reaching a local bottom. Factors such as high US bond yields, expensive oil, slowing ETF inflows, and profit-taking have previously made the asset vulnerable to leverage liquidation.
On October 12, the market estimated an 18% probability of a Federal Reserve interest rate hike in October. Meanwhile, Brent crude oil prices decreased from $110 to $103. Analysts note that political uncertainty surrounding the November 3 midterm elections remains a key factor for investors.
On-chain data shows low exchange BTC reserves and a recovery in Apparent Demand, despite it remaining below zero. Large holders, or whales, have increased their holdings to approximately 3 million BTC, maintaining these positions throughout the recent market correction.
Analyst Darkfost notes that the Seller Exhaustion indicator suggests intensified selling pressure following Bitcoin's move above $85 000. This trend is particularly evident among short-term holders, reaching levels comparable to previous local tops in the current cycle.
