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- Analysts say Bitcoin selling pressure is likely fading.
- Weak liquidity and macro risks may keep BTC range-bound for months.
- A sustained rally may require stronger inflows and improved sentiment.
Bitcoin’s recent slump may be losing steam as investor selling slows, but analysts warn that a quick recovery is unlikely. Instead, the market could be heading into an extended period of consolidation before any meaningful bullish momentum returns.
On Friday, on-chain analyst Willy Woo said recent sell-offs appear to be running out of force. According to Woo, the shift could give Bitcoin room to stabilize in the near term, potentially allowing the price to move sideways for several weeks or even stage a short-lived rebound. However, he cautioned that any rally toward higher resistance levels may struggle to hold.
Liquidity and Macro Conditions Still Weigh on Bitcoin
Despite easing selling pressure, broader market signals remain weak. Woo noted that both spot and derivatives liquidity are deteriorating, historically a poor environment for sustained price growth. Without improved capital inflows, rallies tend to fade quickly.
Macro risks also loom large. Woo warned that Bitcoin has largely grown during a prolonged global expansion cycle, and a breakdown in macroeconomic stability could expose the asset to deeper corrections. In such a scenario, significantly lower support zones could come into play.
Other Analysts See Bottoming Process Underway
Industry voices largely agree that selling may be nearing exhaustion, but they also stress patience. Matt Hougan, chief investment officer at Bitwise, said recent declines were primarily driven by investors reducing exposure rather than structural flaws in Bitcoin itself. He believes the market is transitioning into a bottoming phase, which historically precedes renewed long-term growth.
Technical indicators point in a similar direction. Research lead Andri Fauzan Adziima from Bitrue highlighted oversold momentum signals, suggesting aggressive selling is fading. Still, he expects Bitcoin to remain range-bound for months unless strong ETF inflows or a shift toward risk-on macro sentiment emerges.
Jeff Ko, chief analyst at CoinEx, echoed that view, noting that markets typically need several months to repair sentiment after sharp drawdowns. Rapid V-shaped recoveries, he said, are rare after major corrections.
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Consolidation Likely Before Next Major Trend
Taken together, analyst commentary suggests Bitcoin may be entering a familiar phase in its market cycle — one marked by sideways movement, cautious sentiment, and gradual rebuilding of demand.
While long-term optimism remains intact, the short-term outlook points to patience rather than immediate upside. If liquidity improves and macro conditions stabilize, the groundwork for the next rally could form later in the year or beyond.
Bitcoin’s selling wave appears to be easing, but the market is unlikely to surge immediately. Instead, investors should prepare for months of consolidation as sentiment, liquidity, and macro forces realign.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
