Trader Murphy (@Murphychen888) said Glassnode’s latest BTC seller exhaustion index shows Bitcoin selling pressure has entered an extreme depletion zone. According to Odaily, Murphy said the indicator measures both low volatility and high losses, and a signal is triggered when both conditions are met.

Murphy said the indicator has entered the extreme depletion zone for the first time in the current bear market. He added that historical data show similar conditions have appeared in every bear market, sometimes more than once. The first move into this zone is not always an absolute bottom, but it is often within the bottom range. If prices continue to fluctuate or make new lows while the index does not fall further, a second signal may form, and Murphy said that signal has historically been more reliable.

Murphy said investors who have already opened positions are not necessarily wrong, and waiting for a clearer signal before buying is also an option. He added that investors who still do not buy after a later extreme signal appears may miss the next market move.