Analyst Willy Woo states that selling pressure from Bitcoin investors appears to have exhausted, which could lead to a period of sideways price consolidation. Other market observers warn that this consolidation phase may last for months, with a potential for deeper losses if broader macroeconomic conditions deteriorate significantly.
Bitcoin investors may finally be taking a break from selling, relieving some downward pressure on the cryptocurrency. Analyst Willy Woo said this gives the price a reprieve to consolidate sideways for potentially a month.
Bitcoin prices have been range-bound between $60,000 and $70,000 for the past three weeks. Woo’s educated guess is that the fourth quarter would be good timing for the end of the bearish trend.
The broader market remains heavily bearish with both spot and futures liquidity deteriorating. “I’ve never seen BTC rally when both sources of liquidity are bearish,” Woo added.
Things could get much worse if global macroeconomic conditions break down, according to Woo. He cautioned that $30,000 is a fallback support level, with $16,000 as the final line to maintain a long-term bull trend.
Bitwise chief investment officer Matt Hougan echoed the sentiment on Thursday. Hougan stated the selling pressure is almost over and the market is in the process of bottoming.
“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,” Hougan said.
Research lead at Bitrue, Andri Fauzan Adziima, said Bitcoin’s historic weekly RSI oversold reading confirms aggressive selling pressure is fading. He expects more sideways action in the $60,000 to $70,000 zone for weeks to months.
CoinEx chief analyst Jeff Ko noted that a sudden V-shaped recovery is unlikely after a steep 50% drawdown. “We are likely looking at a prolonged consolidation phase within a wide structural range, as the market takes 3 to 6 months to repair sentiment,” Ko stated.
