Bitcoin: THIS BTC metric hints seller fatigue – $93k bounce or $86k breakdown?

After Bitcoin got rejected at $97,924 a week ago, it saw a sharp drop, hitting a low of $87k. Since then, Bitcoin consolidated between $91k and $88k, reflecting a market at a decision point. 

As of this writing, BTC traded at $88,870, down 1.03% on daily charts and 6.6% on weekly charts. 

Although Bitcoin’s weak structure had been in place for a long time, crypto analysts have remained optimistic, citing bearish momentum. 

Are Bitcoin bears losing market control?

Interestingly, while BTC’s Growth Rate Difference remained negative – so it meant downside pressure has started to ease. According to CryptoRus, the Growth Rate Difference rose to -0.0009, a significant jump from -0.0013 in November peaks. 

Source: CryptoQuant

When this metric rises, it suggests sellers are exhausted while buyers have become more aggressive. As such, selling pressure has cooled, and every market now delivers more gains than before. These market conditions signal strengthening demand. 

In fact, looking at the Bulls and Bears momentum, Bitcoin [BTC] saw a shift, not a trend break. Thus, although bears remain dominant, bulls have started to retake positions, with the BvB EMA normalized rising to 6.19. 

Source: TradingView

When BTC breached $90k, the BvB EMA turned red, dropping to -6.05, indicating sellers sold aggressively and intensified the downside. Since then, this metric has remained positive for 4 consecutive days, signaling the bulls’ attempt to push Bitcoin back above $90k.

In fact, Bitcoin has recorded massive buy orders at $89k, as evidenced by the Spot Taker CVD data from CryptoQuant.

The aforementioned metric has remained positive over the past 7 days, while buyers have shown strong demand at $89k, aiming to flip at $90k.

Source: CryptoQuant

If they sustain this bullish momentum, this demand zone will pivot BTC for another leg up.

However, as of now, these market conditions suggest BTC momentum is in a cooling phase following a period of massive sell pressure. 

With a weakened downside spiral and buyers reactivating participation, market pullbacks tend to be shallow, creating strong recovery potential.

Battle for BTC’s control

While bulls have attempted to retake the market, their efforts have proved futile, as demand has remained inadequate for a trend reversal.

As a result, bears have proved stubborn for a bullish taker. In fact, Bitcoin’s SMI Ergodic Indicator (SMII) made a bearish crossover and fell deeper into bearish territory.

Source: TradingView

When this momentum indicator drops into negative territory, it signals a strong downtrend and a high likelihood of continued weakness. Thus, if sellers fight off the latest bull’s attempt, BTC could drop to $86,270.

Likewise, if bulls hold onto the current momentum, the Future Grand Trend signals a recovery from the current slip and bounce to $93k.

Final Thoughts

• Bitcoin’s Growth Rate Difference metric signals a market in a cooling phase, as seller exhaustion sets in. 
• BTC buyers established a demand wall at $89k, as they eye another jump towards $93k, despite persisting bearish risk.