Bitcoin Shows Signs of Potential Recovery After Extended Weakness

Bitcoin appears to be hinting at a possible long-term recovery after several months of declining prices, according to chart analysts. For nearly two months now, the leading cryptocurrency has remained in the range of $60,000 after falling below $70,000 in early June. This figure is roughly 50% lower than its peak of about $126,000 reached in October. In May, Bitcoin’s rise to approximately $83,000 provided a chance for investors to decrease their exposure before the anticipated downtrend, as noted by Oppenheimer technical analyst Ari Wald. Since that peak, however, Bitcoin has regained about 60% of its previous rally from 2022 to 2025 and has managed to stabilize above $58,000.

Wald observed that while Bitcoin seems to be approaching a bottom, there’s always a possibility of further declines. He noted that the downward momentum is slowing down, thanks to a bullish divergence in Bitcoin’s Weekly Relative Strength Index, a metric that indicates price movement. In his commentary on Monday, Wald mentioned, “Additional consolidation is expected until Bitcoin regains its 200-day average, and we can’t disregard the chance of another drop similar to what happened in Q4 2022.” Nonetheless, he believes that the recent behavior of Bitcoin’s price offers the most promising evidence of a potential bottom yet.

Currently, Bitcoin’s 200-day moving average, which reflects average closing prices over the last 200 days, stands at around $72,000. Reed Harvey from Wolfe Research supports the notion that Bitcoin is in a larger downtrend and thinks the recent rally to the $65,000 mark may soon lose momentum, leading to another decline. He pointed out, “Prices continue to remain in a clear downtrend below the descending 200-day moving average and have failed to surpass it since the drop in November.” He further added that similar patterns seen this year could indicate another retreat below the 200-day average.

On a more optimistic note, Katie Stockton of Fairlead Strategies remarked that despite Bitcoin’s recent low points, one of the momentum indicators she monitors is beginning to show improvement, indicating that the selling pressure might be easing. This could strengthen the case for a more sustained recovery. As she pointed out in her note on Monday, “Bitcoin’s cyclical downtrend seems to be reaching its conclusion. The prolonged oversold conditions suggest that a foundational stage could be starting.”