Bitcoin continues to face mounting pressure as bearish sentiment grows from both macroeconomic headwinds and persistent selling activity. Analysts say a stronger US dollar combined with heavy long term holder selling is keeping downward pressure on the market.
Rising Dollar Adds Pressure to Crypto Markets
Analysts at Swissblock noted that Bitcoin’s bearish phase became more apparent when the US Dollar Index, known as DXY, began recovering from its lows.
Initially, the weakening dollar provided support for Bitcoin, but sentiment shifted once the dollar reversed higher. According to Swissblock, the stronger dollar tightened liquidity, increased selling pressure, pushed risk indicators higher, and weakened Bitcoin’s overall market structure.
The DXY recently climbed above 101, reaching its highest level since May 2025. Since bottoming at 95.6 in January, the dollar has gained roughly 5.6 percent.
A stronger dollar often signals tighter financial conditions, reducing market liquidity and limiting access to cheap capital. This environment tends to weigh on risk assets like Bitcoin, as investors become more cautious.
It also makes cash and dollar based assets more attractive, especially with expectations that interest rates could rise further this year.
Swissblock emphasized that Bitcoin needs more than just reduced selling pressure to recover. It also requires the dollar’s upward momentum to slow before market conditions improve.
Technical Pressure and OG Selling Intensify
Market analyst Benjamin Cowen observed that Bitcoin is currently trapped between the Bear Market Resistance Band and the 200 week simple moving average, creating a tight technical setup.
He suggested that a major downward move later this year, while potentially unsettling, could help establish Bitcoin’s cycle bottom in the fourth quarter of 2026.
Meanwhile, Galaxy Digital Research reported that selling from Bitcoin holders who have held their coins for more than five years has exceeded institutional buying over the past four weeks.
CryptoQuant analyst Darkfost described this cycle as the largest wave of long term holder selling in Bitcoin’s history. This selling pressure has overwhelmed institutional demand and added further strain to price action.
Bitcoin Price Outlook
Bitcoin climbed to an intraday high of $65,468 on Monday, marking its strongest level in five days. However, the rally failed to gain momentum, and prices slipped back below $64,000 during Tuesday’s Asian trading session.
With liquidity and trading volume continuing to tighten, Bitcoin remains stuck near current levels. As long as the dollar stays strong and selling pressure persists, analysts believe the market remains vulnerable to further downside.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
