Bitcoin has dropped below critical support levels, revisiting the lows seen in February. This recent price action suggests that sellers still dominate the market, and analysts are closely watching to see whether this extreme bearish sentiment could spark a sharp reversal in the coming days.
Long-term support area in focus
According to analyst SuperBitcoinBro, Bitcoin closed the weekly session just under its 200-week simple moving average. Despite this, the price remains above a long-term ascending trendline that connects the cycle lows from 2022 and 2023. This intersection is now considered a significant technical support zone for the cryptocurrency.
The analysis highlights that Bitcoin is now retesting a major downtrend line it previously broke above, turning it into support—a pattern that has historically signaled more substantial trend changes.
The current price structure is being compared to the market bottom formed after the FTX collapse at the end of 2022. At that time, Bitcoin also revisited a breakout point from a lengthy downtrend before launching a broader recovery attempt. This historical similarity has drawn increased technical attention to Bitcoin’s current levels.
A noteworthy pattern is also emerging in the Relative Strength Index (RSI). While price is making lower lows, the RSI is setting higher lows, which may indicate that downward momentum is less intense than during previous declines.
Quick glossary: The RSI is a technical indicator that measures the speed and strength of price movements. Bullish divergence occurs when price drops but the RSI registers higher lows, signaling that selling pressure may be weakening.
Short-term move below $60,000 draws attention
Analyst Kaz notes that Bitcoin first lost support around $63,000, then slipped below $60,000, sweeping the February lows in the process. What was initially seen as a possible stabilization area failed to hold, and selling pressure intensified with a fresh wave of declines.
Data from the derivatives market reinforces this weakness. Total open interest declined during the sell-off, indicating that investors closed positions as prices fell. Cumulative volume delta (CVD) for perpetual futures also turned negative, suggesting that aggressive selling was on the rise in derivatives trading.
Spot markets echoed these bearish signals, with spot volume flow turning sharply negative. Although the pace of selling began to flatten out, liquidation data revealed that traders hoping for a rebound after the last drop were forced out of the market once again.
| Indicator | Current status |
|---|---|
| Price | Tested below $60,000 |
| Open interest | Showed a downward trend |
| Perps CVD | Indicated selling pressure |
| Spot CVD | Stayed in deeply negative territory |
$62,000 seen as key level for potential rebound
While Kaz observes that sellers are currently in control, he also notes that excessive bearish positioning can sometimes lead to powerful reversals. The analysis suggests that if Bitcoin recaptures the $62,000 level, traders with newly opened short positions could be squeezed, potentially pushing the price up toward the next major resistance near $68,200.
Kaz emphasizes that heavy long liquidations, extreme levels of negative futures positioning, and deep negative flows in the spot market are bringing the market closer to a possible reaction rally.
For now, the overall outlook suggests sellers hold the upper hand. However, whether Bitcoin can hold its long-term trendline and reclaim the area around $62,000 will likely determine the direction of its next significant move.
