Bitcoin Faces Intense U.S. Selling Pressure, Analysts Warn of Extended Correction

Key Takeaways

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  Bitcoin is experiencing renewed selling pressure, having dropped below $110,000.
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  Analysts suggest that technical weakness may persist in the short term.
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  Some experts anticipate a period of sideways movement before a potential recovery later this year.

Data shared by analyst Crypto Rover highlights a widening “Coinbase Premium Gap,” indicating that American investors are selling Bitcoin more aggressively than their international counterparts. This trend coincides with a noticeable decline in BTC’s price, which briefly fell below $110,000.

The selling momentum is occurring as optimism for near-term interest rate cuts diminishes, following hawkish remarks from Federal Reserve officials. This, combined with the ongoing U.S. federal government shutdown and deteriorating investor sentiment, has heightened uncertainty in both traditional and cryptocurrency markets.

According to CoinGlass data, most recent liquidations were concentrated in long positions, indicating that leveraged bullish bets have been purged amidst the downturn. This cascade of liquidations amplified short-term pressure, accelerating Bitcoin’s slide over the past week.

Crypto Rover noted that this pattern is not unprecedented. He pointed out that Bitcoin experienced a similar sell-off during the first week of November 2024 before embarking on one of its strongest rallies of the year. He commented, “History doesn’t always repeat itself, but Bitcoin tends to react the same way when markets reset.”

Technical Signals Turn Bearish

Technical indicators also suggest a fragile market setup. Fairlead Strategies founder Katie Stockton warned that Bitcoin’s breach below its 200-day moving average—a critical gauge of long-term trends—signals short-term vulnerability. The 200-day average is currently positioned around $109,800, and a sustained drop below this level increases the probability of a deeper correction.

Stockton anticipates that the pullback could extend for several weeks before a potential rebound occurs. She identified $94,200 as the next significant support area and cautioned that a brief dip below $100,000 remains a possibility. Nevertheless, she believes Bitcoin’s broader trend remains intact, characterizing the current decline as a necessary pause within an overall long-term bullish cycle.

A Healthy Reset Before Recovery?

Despite the sharp correction, some market observers view the downturn as a healthy realignment. SynFutures CEO Rachel Lin suggested that Bitcoin’s decline could signify a consolidation phase preceding the next upward movement. She forecasts sideways trading through early November, followed by a resurgence in strength as long-term investors and institutional buyers maintain consistent inflows via ETFs.

Lin elaborated, “Cautious optimism prevails. Bitcoin may continue to consolidate for a while, but once confidence returns, the market could reignite. Long-term holders remain active, and structural demand for Bitcoin hasn’t faded. We still see a path to $150,000 before year-end.”

With substantial U.S. selling pressure meeting global accumulation, traders are now closely observing whether November will mirror the pattern of the previous year—a temporary shakeout preceding a renewed rally.