Bitcoin investors may finally be easing off their selling, potentially reducing downward pressure on the asset, according to crypto analyst Willy Woo.
“This bearish sell-down by investors seems to have exhausted,” Woo wrote on X on Friday, suggesting the market could now see a period of sideways consolidation lasting about a month. He added that a rebound toward the mid-$70,000 range is possible, though such a move would likely face rejection.
Bitcoin has traded within a tight band between $60,000 and $70,000 over the past three weeks, briefly slipping below $67,000 in late Thursday trading.
Looking ahead, Woo said his “educated guess” is that the fourth quarter could mark the end of the current bearish phase, with bullish momentum potentially returning in the first or second quarter of 2027.
For now, however, he described the broader crypto market as “heavily bearish,” citing weakening liquidity across both spot and futures markets. “I’ve never seen BTC rally when both sources of liquidity are bearish,” he added.
Analysts warn of more Bitcoin downside before recovery
Further losses could be on the horizon if global macroeconomic conditions weaken, the analyst cautioned.
Bitcoin has only existed during what he described as a “secular global macro bull market” from 2009 to 2026. If that broader macro backdrop were to unravel, he warned that $30,000 could act as a key support level, while $16,000 would represent the final threshold needed to preserve Bitcoin’s long-term bullish structure.
Matt Hougan, chief investment officer at Bitwise Asset Management, shared a similar view in a post on X on Thursday, addressing various conspiracy theories surrounding recent market movements.
“The real reason Bitcoin is down is that a bunch of people who were long Bitcoin sold their Bitcoin exposure,” Hougan said.
According to him, investors exited positions for a range of reasons — including adherence to the traditional four-year cycle, concerns over quantum computing risks, reallocations into AI startups, and other factors — but he added that the bulk of the selling pressure now appears to be nearing its end.
“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.”
Months of sideways consolidation likely
Andri Fauzan Adziima, research lead at Bitrue, told Cointelegraph that Bitcoin’s historically oversold weekly RSI (relative strength index) “strongly confirms that aggressive selling pressure has peaked or is fading,” calling it a classic exhaustion signal behind the recent rebound from lows.
That signal also reinforces expectations for an extended consolidation phase. “Expect more sideways chop, repeated tests of $62,000 to $65,000 support, and range-bound action between $60,000 and $70,000 for weeks to months,” he said, unless sustained ETF inflows or a broader macro risk-on shift provide a catalyst for a breakout.
Meanwhile, Jeff Ko, chief analyst at CoinEx, said that although improving spot ETF inflows indicate selling pressure may be easing, “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, reminiscent of the sideways action we saw post-LUNA,”
