Bitcoin's $85K Push: Is the Bottom In?

Bitcoin spot and margin longs pushed BTC to $85K, but the bottom isn't in yet.

The Bitcoin sell-off that dominated the market for most of the week appears to be easing, with BTC price recovering to the $80,000 range and reaching an intra-day high at $85,120. Some traders believe that Bitcoin was overdue for a bounce, given how deeply oversold some of its technical indicators had become. However, those holding this belief warn that if new buyers fail to sustain the momentum or negative macroeconomic news resumes, BTC is likely to revisit its recent lows.

HighStrike's head of options and crypto trading, JJ, noted 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."

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.