The crypto market is on edge as Bitcoin faces renewed selling pressure. To avoid a prolonged bear market, Bitcoin needs to meet three crucial conditions, according to recent analysis. These factors could determine whether the market regains momentum—or sinks deeper into bearish territory.
- •Bitcoin must hold above the 200-week EMA
- •Liquidity from the Fed can support prices
- •US market liquidity is crucial post-shutdown
Holding Above the 200-Week EMA
The 200-week exponential moving average (EMA) has historically acted as a strong support level for Bitcoin. Staying above this key technical indicator is critical to maintaining investor confidence and avoiding panic-driven sell-offs. A drop below this level often signals deeper downside risks and could extend the current bearish sentiment. Right now, traders are closely watching how Bitcoin behaves around this threshold.
Fed’s Stealth QE Could Be a Lifeline
Another essential factor is the Federal Reserve’s stealth quantitative easing (QE). Although not officially labeled QE, recent actions by the Fed—like balance sheet expansion—are quietly injecting liquidity into the system. This hidden support could provide a much-needed cushion for risk assets like Bitcoin. Increased liquidity often translates to more capital flowing into the crypto market.
INSIGHT: 03 things Bitcoin needs to avoid a deeper bear: $BTC needs to hold above the 200-week EMA, the Fed’s stealth QE to add liquidity, and US liquidity to return after the shutdown. pic.twitter.com/rzzZOGeVlZ
— Cointelegraph (@Cointelegraph) November 5, 2025
US Liquidity Must Return Post-Shutdown
The recent U.S. government shutdown temporarily slowed liquidity flow in financial markets. As the country moves past this disruption, a return of U.S. market liquidity will be critical for crypto. Institutional investors and large-scale traders often rely on this liquidity to maintain and build positions. Its recovery will be a key signal for a potential Bitcoin bounce-back.