Bitcoin Price Stuck in Sideways Trend, Analyst Watches for Breakout

Bitcoin has been stuck in the low $60,000s since February, after what analyst Jamie Coutts calls a capitulation low. Since then, price has mostly moved sideways, with one counter-trend rally of about 30%, which he says is normal behavior for Bitcoin bear markets.

Coutts is watching for a signal to confirm the downtrend has actually reversed: Bitcoin needs to break above the high $70,000s. Until that happens, he's treating this as a probability game, not a done deal.

Coutts points to weekly RSI divergences as his go-to signal for spotting when a downtrend is losing steam. This means price keeps falling but momentum indicators stop confirming the drop. He had flagged the opposite pattern back in September and October of last year, when Bitcoin kept hitting new highs while momentum quietly weakened underneath.

Coutts has already started adding top Layer 1 tokens and blue chip DeFi tokens to his portfolio, using what he describes as his largest cash reserve in years. Some of those DeFi protocols are currently trading 70% to 80% below their highs, and he's targeting names showing relative strength against the broader market.