Seller Exhaustion Visible After Selling Climax
The chart shows a classic selling climax, followed by a clear change of behavior as price failed to sustain below prior lows and instead met resistance. The secondary test of that low was notably weak, accompanied by negative price extension (diminishing downside momentum). Downswings since then have consistently lost steam—each reaction appears more exhausted than the last.
This progressive weakening of selling pressure strongly suggests sellers are fatigued and that a relief rally could develop once the next leg of distribution completes.
Current Resistance Behavior and Lack of Conviction
The most recent push into resistance produced only a shallow backup, lacking meaningful strength or follow-through volume. At present, we see no decisive evidence of fresh buyer absorption or aggressive demand stepping in to defend higher levels.
Near-Term Bias & Expected Swing
While the broader setup hints at seller exhaustion and a potential bullish reversal in the medium term, the immediate next move appears corrective to the downside. Hidden distribution (sellers fading rallies) remains present in recent upswings, increasing the probability of one more downward leg—likely retesting key support or briefly undercutting it in a shakeout maneuver. This would serve to flush remaining weak hands and provide a cleaner low before any sustainable rally can gain traction.
Key Levels to Watch
Resistance: Current zone (failure here reinforces the short-term bearish tilt)
Support: Primary zone below; break-and-retest (or minor violation) would align with shakeout scenario
Invalidation (bullish shift): Strong close above resistance with increasing demand/volume
The chart shows a classic selling climax, followed by a clear change of behavior as price failed to sustain below prior lows and instead met resistance. The secondary test of that low was notably weak, accompanied by negative price extension (diminishing downside momentum). Downswings since then have consistently lost steam—each reaction appears more exhausted than the last.
This progressive weakening of selling pressure strongly suggests sellers are fatigued and that a relief rally could develop once the next leg of distribution completes.
Current Resistance Behavior and Lack of Conviction
The most recent push into resistance produced only a shallow backup, lacking meaningful strength or follow-through volume. At present, we see no decisive evidence of fresh buyer absorption or aggressive demand stepping in to defend higher levels.
Near-Term Bias & Expected Swing
While the broader setup hints at seller exhaustion and a potential bullish reversal in the medium term, the immediate next move appears corrective to the downside. Hidden distribution (sellers fading rallies) remains present in recent upswings, increasing the probability of one more downward leg—likely retesting key support or briefly undercutting it in a shakeout maneuver. This would serve to flush remaining weak hands and provide a cleaner low before any sustainable rally can gain traction.
Key Levels to Watch
Resistance: Current zone (failure here reinforces the short-term bearish tilt)
Support: Primary zone below; break-and-retest (or minor violation) would align with shakeout scenario
Invalidation (bullish shift): Strong close above resistance with increasing demand/volume
Note
It feels that we had a rally just because sellers were not ready to push the price lower yet. Look at that volume at $1900-$2000 Absolutely nobody was there. Then the rally shows some signs of deterioration.My Bias is still bearish and waiting for a more formal push down
Note
Although we're seeing some sellers exhaustion at least at local level, we do see the same with the buyers, showing exhaustion and hardship to continue. We'd need to see a confirmation down bar maybe an EOM for any short entries but we may get that in the next couple of days
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.