Following the correction to $99k, the Bitcoin Seller Exhaustion Composite flashed an exhaustion signal, highlighting severe unrealized loss and investor capitulation across the weekly-monthly timeframe.

The Seller Exhaustion Composite is a framework which models the points of extreme financial pressure and reaction, based on three profit/loss metrics:

🔹MVRV Ratio which assesses the unrealized profit or loss held by investors within the cohort.
🔹SOPR which evaluates the average magnitude of profit or loss locked in by the cohort.
🔹Realized Loss which isolates the USD denominated magnitude of loss locked in by the cohort.

This model can be used across multiple timeframes and assets.

For further information on the Seller Exhaustion Composite, please visit our dedicated article: Identifying Seller Exhaustion