Bitcoin Selling Pressure Nears Exhaustion, Analyst Says

Bitcoin has found itself at a crossroads after a sustained period of selling pressure, with observers noting that the selling might be losing steam. Over the past three weeks, the flagship cryptocurrency has traded in a relatively narrow band between $60,000 and $70,000, with a brief dip below $67,000 during late-session trading on Thursday. Several analysts argue the market is transitioning from a pullback phase into a period of sideways consolidation rather than an immediate rebound. The coming weeks could reveal whether buyers regain control or if the market continues to digest recent liquidity shocks, leaving traders with a watchful stance as macro dynamics and liquidity conditions evolve.

Key takeaways

• Investor selling pressure appears to have exhausted itself, according to analyst Willy Woo, potentially opening a window for a month of sideways price action and a possible rebound that may still face resistance near the mid-$70,000s.
• Bitcoin has traded in a $60,000–$70,000 range for roughly three weeks, dipping briefly under $67,000 in late trading on Thursday, underscoring a broad consolidation phase.
• Analysts project the fourth quarter could mark a turning point away from the current bear trend, with momentum potentially reasserting in Q1 or Q2 2027 if macro conditions cooperate.
• Liquidity remains a limiting factor; both spot and futures markets show deterioration, making a rapid upside breakout less likely in the near term.
• RSI and on-chain observations point to exhaustion of selling pressure, with some strategists suggesting the bottoming process is underway even as markets stay range-bound for weeks to months.

Tickers mentioned: $BTC

Sentiment: Neutral

Price impact: Neutral. Easing selling pressure hints at a potential pause, but prices remain within a broad range without a clear breakout.

Trading idea (Not Financial Advice): Hold. The market shows signs of exhaustion but lacks a decisive catalyst for a sustained rally.

Market context: The narrative sits within a broader crypto environment characterized by cautious risk sentiment and liquidity constraints. While some observers note improving spot ETF inflows, the overarching backdrop remains orderly rather than exuberant, keeping upside catalysts on a tight leash until macro conditions brighten or liquidity improves decisively.

Why it matters

The dynamics surrounding Bitcoin’s price action matter for a wide range of market participants—from retail traders to institutional allocators and developers building on top of the ecosystem. If the bear-phase momentum truly abates and a longer period of consolidation sets in, risk appetite could gradually stabilize, providing a platform for price discovery to occur at a steadier pace. The idea of a bottoming process matters because it reframes expectations for liquidity cycles and the timing of potential demand shocks that historically accompany macro shifts or policy developments.

Several credible voices emphasize that the timing of a new up-leg will hinge on both micro-market signals—like on-chain activity, liquidity dynamics, and ETF inflows—and the broader macro environment. Analysts caution that even with an easing of selling pressure, a sharp rally may require a confluence of favorable conditions, including renewed enthusiasm for risk assets, improved liquidity conditions, and potentially new catalysts from regulatory clarity or product launches. The consensus leans toward a multi-quarter horizon where patience and risk management become paramount for participants trying to navigate a crypto market that has shown a stubborn penchant for extended consolidation after big drawdowns.

“They are mostly done selling, and we are in the process of bottoming. We will set new all-time highs in the future. This is a classic crypto winter, and there will be a classic crypto spring.”

Market observers also point to macro-driven risk factors as a key determinant of the near-term trajectory. A dovish tilt in global liquidity or a swift improvement in risk-on sentiment could lift prices from key support levels, but until that shift materializes, the market may remain hostage to the same cooling dynamics that have dominated for months. Some strategists stress that a sustained rally is unlikely without a meaningful reacceleration in demand and a corresponding uptick in liquidity across spot and derivatives markets.

Beyond price action, a separate line of inquiry focuses on the depth of the current retracement relative to historical cycles. A number of veteran observers view the recent sell-off as a function of tactical rotations—investors trimming exposure to Bitcoin to redeploy capital into AI-related ventures and other growth areas—rather than a fundamental shift in the asset’s long-term case. The four-year cycle narrative, in particular, remains a talking point among serious market watchers who argue that the period ahead could see a transitional phase before renewed bullish momentum takes hold in subsequent quarters.

What to watch next

• Monitor liquidity metrics in both spot and futures markets for signs of a sustained pickup or further deterioration.
• Track spot ETF inflows and any official regulatory or product developments that might unlock additional demand channels for Bitcoin.
• Observe price tests around the $62,000–$65,000 support zone and the potential for a test of the $70,000 barrier as catalysts emerge.
• Watch macro risk sentiment and potential shifts in risk assets that could spell a broader appetite for crypto exposure.
• Keep an eye on Q4 and early 2027 macro narratives, including potential catalysts identified by market observers for a shift in momentum.

SOURCES & verification

• Willy Woo’s observation on market exhaustion via his X post: https://x.com/willywoo/status/2027202273525592298
• Bitcoin price context and recent range behavior noted in market reporting: https://cointelegraph.com/bitcoin-price
• Bitrue research lead Andri Fauzan Adziima on RSI exhaustion and its implications for consolidation: https://cointelegraph.com/news/bitcoin-adoption-is-booming-even-if-its-price-isn-t-river
• Matt Hougan (Bitwise) comments on selling pressure and the four-year cycle in market action: https://x.com/Matt_Hougan/status/2027107215036059861
• CoinEx analyst Jeff Ko on ETF inflows and the likelihood of prolonged consolidation: https://cointelegraph.com/news/bitcoin-bounces-66k-rumors-swirl-jane-street-selling-algorithm

Bitcoin eyes a pause in capitulation as consolidation takes hold

Bitcoin (CRYPTO: BTC) has drifted in a sideways rhythm after a protracted run of selling, with market observers noting that the pace of declines has cooled enough to allow a broader pause. The asset’s price has hovered within a broad corridor from roughly $60,000 to $70,000 for several weeks, punctuated by a fleeting dip below the $67,000 mark during late-session trading. This combination of a paused sell-off and a lack of fresh demand has created an environment where price discovery proceeds in a largely horizontal fashion rather than a decisive move higher or lower.

Analysts have pointed to a convergence of factors that could underpin a more stable baseline for prices. One prominent view comes from Willy Woo, who suggested that the “bearish sell-down by investors seems to have exhausted,” providing the market with a chance to “consolidate sideways for maybe a month,” with a potential rebound toward the mid-$70,000s that would likely be rebuffed if momentum fails to strengthen. Woo’s assessment rests on a blend of on-chain indicators and market psychology, and it was echoed in a subsequent discussion about the broader liquidity backdrop facing the market. The current environment is characterized by limited liquidity in both spot and futures markets, which complicates the path to a sustained rally even as selling pressure wanes.

In other voices, Bitwise’s Matt Hougan argued that the recent depreciation of prices stems in part from a shift in investment priorities, as funds rotated into AI ventures or rebalanced across asset classes. He contended that the selling pressure may be close to exhausted, supported by a mix of four-year cycle dynamics and concerns about quantum computing, which have historically reframed risk appetite in crypto markets. Hougan’s commentary aligns with a chorus of analysts who view the current phase as a classic crypto winter, followed by the expectation of a crypto spring as sentiment improves and long-term holders slowly test new highs again.

Within the market’s current cadence, multiple observers have highlighted that the most convincing signal will be a tangible improvement in liquidity signals in both the spot and futures arenas. Some have noted that recent ETF inflows—specifically in the spot market—have offered a glimmer of support for buyers seeking a firmer footing, though they stop short of signaling a rapid, V-shaped recovery. Jeff Ko, chief analyst at CoinEx, cautioned that a sharp recovery remains unlikely after a steep drawdown, underscoring the probability of a prolonged consolidation phase as investors reassess risk and sentiment adapts to evolving macro conditions. A recurring theme across analyses is the potential for a prolonged period of sideways movement, as sentiment repairs itself gradually in a market that has endured a series of shocks and regulatory debates.

Looking ahead, several market participants anticipate a convergence toward a more constructive regime in early 2027, particularly if macro environments improve and liquidity flows normalize. The forecast rests on the premise that a significant portion of the selling pressure has run its course and that the market will begin to price in a new cycle of demand now tempered by a more robust risk-appetite backdrop. Yet, even with the groundwork for a potential uptick, the path to all-time highs remains uncertain, and the near term is likely to be defined by tests of support in the $62,000–$65,000 zone and resistance around $70,000. The next phase will hinge on whether external catalysts—ranging from macro stimuli to ETF-driven liquidity—arrive in a manner that can sustain gains beyond a shallow relief rally.