Bitcoin’s recent move back above the $71,000 level has reignited debate across the crypto market, but optimism remains fragile as traders weigh whether the rebound has real strength or is merely another pause in a broader downtrend. But it has since fallen to below $70,000.
Recall that the flagship cryptocurrency recently slipped below the $80,000 mark for the first time since April 2025, extending its decline and bottoming out just above $77,000 on January 31.
This followed weeks of heightened volatility and sharp pullbacks that previously drove Bitcoin as low as $59,848. While the recovery has offered a measure of relief, it has done little to fully restore market confidence.
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Bitcoin gained as much as 3% on Sunday, yet skepticism dominated sentiment as the weekly close approached. Characteristic volatility returned, and many traders remained unconvinced that the worst of the sell-off was over. Market participants continue to debate whether the latest bounce marks the end of the bear phase or simply another short-lived relief rally within a broader corrective cycle.
Several analysts have leaned toward caution. Technical analyst Tony Severino pointed to multiple indicators that, in his assessment, still favor further downside and the possibility of new lows. Similarly, trader BitBull argued that Bitcoin has yet to experience a final capitulation. Drawing comparisons to the 2022 market cycle, he suggested that a true bottom could form below the $50,000 level, an area that would place a significant portion of recent ETF buyers at a loss.
Perspectives differ sharply between investor groups. Bitwise CEO Hunter Horsley noted that Bitcoin’s earlier dip below $70,000 is being interpreted in contrasting ways by long-term holders and institutional investors.
While many long-term participants are growing uneasy, newer institutional entrants are increasingly viewing the pullback as an attractive entry opportunity. According to Horsley, some institutions are now seeing price levels they previously believed were permanently out of reach.
Horsley described the current environment as a bear market, noting that Bitcoin is being “swept up” alongside other macro assets as investors reduce exposure and sell liquid holdings. In the near term, he said, Bitcoin is trading more like a risk asset than a standalone store of value.
This cautious reality stands in contrast to earlier bullish projections. In October, Standard Chartered’s Head of Digital Asset Research, Geoff Kendrick, said he did not expect Bitcoin to trade below $100,000 again. However, Bitcoin’s recent performance has challenged that outlook. The asset is down roughly 22.6% over the past 30 days and was trading around $69,635 at the time of publication.
From a technical perspective, crypto analyst Crypto Candy observed that Bitcoin’s recent price action has largely followed expected patterns. A pullback from the $61,000–$58,000 region toward the $70,000–$67,000 zone had been anticipated, and the market has reacted within that range.
Crypto Candy emphasized that a short-term bullish outlook would require a decisive daily close above $71,000. Until that level is reclaimed and held, the probability of continued range-bound movement or further downside tests remains elevated.
Looking ahead
With momentum indicators flashing mixed signals and macroeconomic uncertainty still weighing on risk assets, caution continues to dominate market sentiment. Bitcoin’s near-term direction is likely to depend on its ability to reclaim key resistance levels and on broader shifts in global liquidity and investor risk appetite.