Bitcoin Recovers as Selling Pressure Eases, Bottom Formation Signals Emerge
Bitcoin is showing clear signs of recovery after touching nearly $82,000 on Friday last week, with multiple analysts noting that selling pressure has eased and an uptrend could return soon. Selling Pressure Eases, Bottom Formation Signals Emerge According to market data, Bitcoin has begun climbing back from its low above $82,000. Capriole Fund founder Charles Edwards noted that both tech stocks and the crypto market sold off sharply over the past two weeks as market sentiment kept "flip-flopping" ahead of Fed rate cut expectations.
Bitcoin is showing clear signs of recovery after touching nearly $82,000 last Friday, with multiple analysts noting that selling pressure has eased and an uptrend could return soon.
Selling Pressure Eases, Bottom Formation Signals Emerge
According to market data, Bitcoin has begun climbing back from its low above $82,000. Capriole Fund founder Charles Edwards noted that both tech stocks and the crypto market sold off sharply over the past two weeks as sentiment kept shifting on Fed rate cut expectations.
"But when the market reverses course again, Bitcoin is likely to be pulled higher," Edwards said.
Analysts at Swissblock also stated that Bitcoin has taken its "first real step" toward forming a bottom. They highlighted that the Risk-Off signal is declining sharply, indicating that selling pressure has cooled and the capitulation phase may be over.
However, Swissblock cautioned that a second wave of selling could emerge — weaker than the first and typically not breaking the previous low. This pattern is actually one of the most reliable bottom formation signals.
"The second wave usually marks seller exhaustion and a handoff of control back to the buyers," Swissblock noted.
TradingView data shows Bitcoin fell as low as $80,600 on Coinbase — its lowest level since mid-April. From its all-time high above $126,000 in early October, BTC has corrected roughly 36%.
Fed Rate Cut Expectations Bounce Back
After dropping to around 30% last week, the probability of a Fed rate cut in December has surged back to roughly 70%, according to Charles Edwards.
The CME FedWatch tool also shows a 69.3% probability that the Fed will cut by 0.25 percentage points at its December 10 meeting.
The X account "Global Markets Investor" noted that this reversal in expectations played out in just 48 hours — a testament to how sensitive markets are to monetary policy signals.
Additional Liquidity Could Be Injected
Analyst "Sykodelic" predicts the Fed may deploy a "reserve management" measure at its next meeting, which would effectively amount to injecting liquidity into the financial system.
"They're going to have to pump liquidity at some point — otherwise they risk insolvency themselves," he said.
History shows that periods of rate cuts and liquidity easing have consistently created favorable conditions for risk assets, especially crypto. Past instances of the Fed expanding its balance sheet have been followed by strong Bitcoin and broader market rallies.