From a technical analysis perspective, a violent price movement definitely has a good possibility. But does it necessarily mean that the price movement would be upwards? Definitely not. As always, it could go either way. Before you know it, we could be at $3200.
Theres more liquidity outside Bitcoin then sellers waiting or forced sellers within Bitcoin wanting to sell at these levels
Could you explain in simple words what you mean by this?
I think the OP highlights a good possibility that BTC is a reasonable hedge for some in that it could rise outside of other normal risks like the oil price or various conventional assets. BTC could rise just because its exhausted sellers and availability, it does tend to be a phase of one or another I guess
Exhausted sellers don't create demand
If anything, it means stagnating prices, not rising ones. But with speculative markets in the given circumstances (i.e. the ones we are in now), the price can go only lower. In fact, this is what we are witnessing right now, and the real question should be how fast we will be falling. Put differently, exhausted sellers don't mean a shit if there is not enough demand to give the market a required boost and change of sentiment