Bitcoin's $60,000 Stance: A Bottoming Process or Just a Bounce?

Bitcoin has been trading around $60,000 for an extended period, which some believe could be part of a bottoming process. According to Scott Melker, several technical and market-structure signals are similar to those seen near previous Bitcoin cycle lows.

Melker pointed out that BTC recently traded about 10% above its July low near $58,000, while sentiment remained firmly in the fear zone. He highlighted a deeply oversold weekly relative strength index, a bullish divergence, and a recovery above the 200-week moving average as encouraging signs.

Bitcoin also bounced near its 50-month moving average, a level that has historically aligned with major accumulation zones. However, Melker cautioned that Bitcoin has not yet reclaimed key resistance levels and could still revisit the lower end of its range.

Melker noted that many entities previously expected to support Bitcoin prices have instead become sellers. Digital asset treasury companies have liquidated holdings or abandoned Bitcoin accumulation strategies after their stock premiums collapsed. Strategy, led by Michael Saylor, recently sold Bitcoin and shifted its focus toward increasing cash reserves and managing its preferred-stock obligations.