Bitcoin Climb To Continue As Selling Pressure Eases: Analysts

Bitcoin showed signs of recovery after nearing $82,000 on Friday, with analysts noting easing selling pressure and rising Fed rate cut expectations.

Crypto market analysts are confident that Bitcoin’s recovery could continue as the cryptocurrency has begun to move higher since its bottom at just above $82,000 on Friday.

Tech stocks and crypto markets dumped over the past two weeks “because of the market flip-flopping on expectations for a rate cut,” Capriole Fund founder Charles Edwards posted to X on Monday.

“As the market reverts, expect it will carry Bitcoin somewhat higher,” he added.

Analysts at wealth manager Swissblock added that Bitcoin (BTC) has taken its first real step toward forming a bottom.

They added that this week is critical, as it needs “to see selling pressure continue to fade.”

However, there is often a second selling wave, which is weaker than the first and with price holding the previous lows, which becomes one of the most reliable bottom signals, Swissblock said.

“That second wave usually marks seller exhaustion and a shift in control back toward the bulls,” the analysts added.

TradingView shows Bitcoin dropped to $80,600 on Coinbase on Friday, its lowest level since mid-April. The fall took the depth of its correction from its early October all-time high above $126,000 to 36%.

The probability of a Federal Reserve rate cut in December fell to around 30% last week, but it has since returned to 70%, said Edwards.

Source: CoinTelegraph