[Analysis] “Bitcoin sees short sellers in control… selling pressure at a three-month high”

Bitcoin (BTC) appears to have registered its highest level of selling pressure in the past three months.

Gaah, a contributor at CryptoQuant, said via CryptoQuant on the 25th (local time) that “since July 2025, the dominant force in the (Bitcoin) market has been selling,” adding that “bid limit orders have merely served to absorb supply, and selling pressure has now reached its highest level in the past three months.”

He also cited the funding rate. Gaah noted that “in the futures market, funding rates overall are staying in negative (-) territory,” contrasting this with “the previous local-bottom zone when Bitcoin was around $80,000, when funding rates mostly stayed positive (+).” Typically, a negative funding rate is seen as indicating more short (sell) positions than long (buy) positions. Gaah said, “Back then, buying sentiment was relatively stronger, but now selling pressure is structurally dominating the market.”

Gaah emphasized that “after Bitcoin set its most recent all-time high, excessive leverage is being gradually unwound.” He added, “Price declines trigger capitulation and help improve leverage health,” and “while this increases volatility in the short term, it can be interpreted as a positive process of restoring structural soundness over the long term.”