Bitcoin has been trading in the $60,000 range for nearly two months after falling below $70,000 in early June, representing a significant decline from its October peak of approximately $126,000. Oppenheimer's technical analyst Ari Wald noted that while Bitcoin has stabilized above $58,000, it has retraced about 60% of its gains from the previous rally.
Wald observed a bullish divergence in Bitcoin's weekly relative strength index, indicating that downside momentum is slowing, which could suggest a developing bottom. However, he cautioned that further weakness is still possible before Bitcoin can reclaim its 200-day moving average, currently around $72,000.
Wolfe Research's Read Harvey expressed skepticism about the recent price uptick, predicting it will lose momentum and lead to another decline, potentially dropping below $40,000 by October.
On a more optimistic note, Fairlead Strategies' Katie Stockton pointed out that some momentum indicators are improving, indicating that selling pressure may be easing and a basing phase for Bitcoin could be underway. Overall, while there are signs of stabilization, analysts remain divided on the immediate future of Bitcoin's price trajectory