Bitcoin spot and margin longs push BTC to $85K, but the bottom isn’t in yet

The Bitcoin sell-off, which dominated a majority of the weak, appears to be easing off, with BTC price making a recovery back in the $80,000 range to reach an intra-day high at $85,120. 

Some traders believe that Bitcoin (BTC) was overdue for a bounce, given how deeply oversold some of its technical indicators had become. Those holding that belief warn that once bids are filled near the recent lows, if new buyers fail to sustain the momentum or negative macroeconomic newsflow resumes, BTC is likely to revisit its recent lows. 

HighStrike head of options and crypto trading JJ took a different view, noting that “Coinbase spot bids” were “filled,” representing the “first flip of bids outweighing asks now since the September bottom at $52,000.” 

Regardless of the short-term price action from Bitcoin, many analysts continue to say that historical data highlights the recent drawdown as a prime purchasing opportunity. 

On X, Wintermute trader Jake O said, 

“For anyone with long-term conviction in the space, the current disconnect between positioning/sentiment vs fundamentals has never looked better. The setup feels similar to August 2024 as spot dipped below $50K on mass liquidations and I do think we’ll see large topside trading over the next few sessions.”

Related: Bitcoin rebounds to $84K — Analysts say BTC crash was ultimate buy signal

From a technical perspective, chartered market analyst Aksel Kibar described Bitcoin’s sweep of the $78,000 level as a “sharp retest” but declined to say whether a price bottom had been achieved. 

Momentum and technical traders should note that Bitcoin daily RSI remains in deeply oversold territory, and despite the strength of today’s rebound, the daily candlestick pattern of lower highs and lower lows. Failure to establish a daily close candlestick that generates a higher high could be an early sign that the downtrend is not yet complete.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.