[Analysis] "Bitcoin forms a bottom after recent sharp drop…selling pressure begins to ease"

Bitcoin (BTC) formed a low near $82,000 last week and rebounded, leading analysts to say selling pressure is easing.

On the 24th (local time), according to cryptocurrency-focused media Cointelegraph, Charles Edwards (Charles Edwards), founder of Capriole Fund, assessed that the selling over the past two weeks was "a risk-off flow resulting from a reversal in rate cut expectations." He said, "If the market begins to reflect rate cut expectations again, Bitcoin has room to rise further."

Cryptocurrency analysis firm Swissblock (Swissblock) also analyzed, "Early signs of Bitcoin forming a bottom have appeared," adding, "As risk-off indicators plunged, selling pressure has noticeably decreased." However, the report explained, "Typically, a weak second wave of selling follows the first rebound; if the low holds at that time, it can be interpreted as a bottom signal."

Bitcoin fell to as low as $80,600 on Coinbase last Friday, widening its decline to about 36% from the October high.

Meanwhile, expectations have risen as the outlook for US rate cuts has strengthened again. Edwards said, "The probability of a December rate cut, which had fallen to 30% last week, has rebounded to around 70%." CME FedWatch also put the chance of a 0.25%p cut at the December meeting at about 69%.

A Sykodelic (Sykodelic) analyst said, "There is a possibility that the Fed will announce liquidity-enhancing measures next month," adding, "If the liquidity environment improves without further tightening, uncertainty for high-risk assets will decrease."