Bitcoin Returns: Analysts See Selling Pressure Easing, Expect More Growth

Bitcoin Returns: Analysts See Selling Pressure Easing, Expect More Growth

Bitcoin is showing signs of strength after a slump earlier in the week, when it neared the $82,000 mark. Cryptocurrency experts say the selling pressure is easing, and expectations of a Fed rate cut are growing, which could support further growth for the oldest cryptocurrency.

Recovery on the horizon

Bitcoin has been moving higher in recent days from its low just above $82,000 on Friday, with analysts pointing to a significant improvement in sentiment. Charles Edwards of Capriole says the market is coming back and Bitcoin is expected to continue to strengthen.

Signals Point to a Bottom

Swissblock, an asset management firm, warns that Bitcoin is showing the first real signs of a bottom. “The Risk-Off signal is falling sharply, which tells us that the selling pressure has eased and the worst of the capitulation is likely behind us,” analysts say. While this week is crucial, it’s important to watch for signs that the selling pressure is easing – often a second, weaker wave of selling signals that sellers are exhausted and bulls are back.

Technical indicators show Bitcoin has bounced off lows

On Friday, Bitcoin fell to $80,600 on Coinbase, its lowest level since April. However, it has since rebounded, narrowing its correction from its October high of over $126,000 to 36%. This is seen as a sign that the market is stabilizing.

Expectations of a Fed rate cut have revived

The probability that the Fed will cut rates in December has increased significantly. Last week, it was around 30%, but now it is around 70%. According to the CME Fed Watch Tool, the chance of a 0.25 basis point cut is 69.3%. This shift in expectations could support growth in risk assets, including cryptocurrencies.

Liquidity and the Fed’s Future Actions

Marketers are speculating that the Fed could announce a liquidity expansion or other supportive measures at its next meeting that could further support markets. Some analysts warn that too much easing could have long-term consequences, but in the short term, increased liquidity is seen as a positive sign for cryptocurrencies.

Conclusion

With the selling pressure easing and the chances of a rate cut increasing, Bitcoin is likely to continue to strengthen. The market is now at a stage where it may bounce off the bottom and resume its uptrend, which is good news for all investors following the development of the oldest cryptocurrency.

*This is not an investment recommendation.

The Coingarage Team