Bitcoin Selling Pressure Fades, Recovery Delayed by Months

Bitcoin selling pressure is waning, but a sustained recovery may take months, according to analyst Willy Woo and other market observers.

Woo said that 'this bearish sell-down by investors seems to have exhausted,' giving Bitcoin 'a reprieve to consolidate sideways for maybe a month.' A short-term rebound towards the mid-$70,000 range is possible, though Woo noted that level 'would likely be rejected.'

Bitcoin has been trading between $60,000 and $70,000 for roughly three weeks and briefly dipped below $67,000 in late trading Thursday. Woo said spot and futures liquidity are both deteriorating, calling the broader market 'heavily bearish.'

He added, 'I've never seen BTC rally when both sources of liquidity are bearish.'

Woo's outlook puts a potential trend reversal in Q4 2026, with bullish momentum possibly returning in Q1 or Q2 2027. If global macroeconomic conditions worsen, Woo flagged $30,000 as the next support level and $16,000 as the threshold needed to preserve Bitcoin's long-term bull structure.

Other analysts share similar views. Bitwise chief investment officer Matt Hougan said the sell-off stems from investors exiting their Bitcoin positions, citing the four-year cycle, concerns about quantum computing, and capital rotation toward AI startups.

Bitrue research lead Andri Fauzan Adziima said that Bitcoin's weekly RSI oversold reading 'strongly confirms that aggressive selling pressure has peaked or is fading.'

CoinEx chief analyst Jeff Ko said a 'V-shaped recovery is unlikely after a steep 50% drawdown,' estimating the market will need three to six months to repair sentiment.