Analyst: Bitcoin selling pressure eases, but not enough to confirm a reversal

BlockBeats news, November 6 - According to Bloomberg, Bitcoin edged slightly higher after Thursday's sell-off, trading around $76,000 in early New York trading on November 6. A day earlier, Bitcoin fell nearly 6% from above $80,000. Other crypto assets also broadly recovered, with BNB, ZEC, and HYPE all gaining between 1% and 3%.

Poor earnings from chip companies and investor expectations that Democrats controlling Congress could tighten regulation on data center expansion jointly weighed on risk appetite. The S&P 500 recorded its largest single-day decline in over a year on Thursday. On Friday, S&P 500 and Nasdaq 100 futures edged higher, driving improved sentiment in the crypto market. However, crypto industry confidence remains fragile after Binance suffered an approximately $6.3 billion theft incident on October 29.

Bitunix analyst Dean Chen said: "Bitcoin appears to have caught some breathing room after yesterday's sharp sell-off, but it's still prudent to call this a reversal now. I would prefer to describe the current move as easing selling pressure rather than the start of a new accumulation phase."

IG chief technical analyst Axel Rudolph believes this round of selling reflects market doubts about returns on massive AI investments, concerns that data center construction could be dragged down by tighter regulation, and investors retreating from highly valued growth assets. However, while stocks continued to fall, Bitcoin temporarily held current levels, indicating buyers stepping in to defend. This relative strength will be an important observation point for testing whether Bitcoin is beginning to decouple from tech stock trading.

On capital flows, data shows U.S. spot Bitcoin ETFs saw net outflows of approximately $430 million on Thursday. Among them, Fidelity FBTC saw net outflows of about $200 million, and BlackRock IBIT saw net outflows of about $105 million.

Marex co-head of crypto trading Samuel Leyne said the current rebound is more like temporary relief than a sustained recovery. Restoring confidence requires actual catalysts such as geopolitical de-escalation, falling oil prices, or improved macroeconomic conditions. Before that, attention should be paid to stock markets, ETF flows, and basis levels. Bitcoin needs to reclaim above $77,000 to build momentum; if stocks continue to fall, $75,000 will face a renewed test.