Bitcoin Reclaims Key Trend Line as Bear-Market Recovery Hits Critical Stage

Bitcoin is near its highest levels since mid-May as it enters the final week of August. The cryptocurrency's bear-market recovery has reached a critical stage, with its weekly candle closing above its 50-week exponential moving average (EMA) for the first time since November 2025.

This marks a significant milestone in Bitcoin's price action, as traders often monitor this trend line during bear markets. Historically, BTC has retested the 50-week EMA before capitulating into its ultimate macro lows.

Despite recent strength, some traders remain unconvinced by Bitcoin's price action. Rekt Capital warned that not only the 50-week EMA but also the entire area around $80,000 serves as resistance for bulls to overcome.

BTC has returned investor cohorts to net profit, while new money enters at $73,000. The US Treasury's debt buyback purchases have sparked a Bitcoin short squeeze, wiping out a record $3.1 billion of crypto short positions over two days.