The recent stabilization of Bitcoin’s price could indicate that the intense selling pressure is starting to ease, though experts caution that a full reversal of the bear market is not yet on the horizon.
“Bitcoin failed to accelerate lower on risk-off headlines, a signal that downside pressure may be losing momentum,” 10x Research noted in a recent market update. The firm pointed out that Bitcoin (BTC) is reclaiming its 20-day moving average near $68,500, and Bollinger Bands are tightening, suggesting conditions are forming for potential range expansion.
Key Technical Indicators Show Stabilization
As of late trading on Monday, BTC had risen back above $70,000 on Coinbase but had since retreated to around $68,400, according to TradingView. The $62,500 level has held strong on three separate tests, reinforcing its significance as a key support level.
“Bullish divergences are emerging,” 10x Research added, noting that both the Relative Strength Index (RSI) and stochastic indicators are trending higher. These early signs suggest that momentum may be stabilizing, even within a broader bearish structure.
Analysts See Tactical Shift, Not Structural Reversal
Despite the positive technical signals, 10x Research emphasized that the evidence points to a meaningful tactical shift rather than a confirmed structural turn. Volatility is compressing, ETF flows have strengthened, and the Coinbase discount has disappeared—indications that the market is not accelerating into a new downturn.
“However, our broader allocation framework still classifies Bitcoin as being in a bear market regime, meaning any bullish exposure remains tactical rather than structural,” the analysts concluded.
Market Sentiment and External Factors
Justin d’Anethan, head of research at Arctic Digital, told Cointelegraph that recent macro and crypto-native events have pushed Bitcoin’s price down, but the market is now moving from a frantic to a more measured state. “This bodes well for a consolidation, accumulation, or at least a range-bound period,” he said.
“The fact that selling pressure isn’t having much impact despite tariffs, the prospect of war, or previously disappointing rate cut expectations suggests that sellers themselves are exhausted or that there are genuine buyers averaging in at these levels,” d’Anethan added.
Derivatives Market Dynamics
Bitrue research lead Andri Fauzan Adziima told Cointelegraph that the fading downside momentum is primarily due to deeply negative funding rates in derivatives markets. This has created overcrowded short positions in perpetual futures, triggering a classic short squeeze and easing selling pressure through tactical relief.
“Negative funding rates mean that short sellers are paying the longs to maintain their positions,” Adziima explained. However, he noted that no confirmed trend reversal has occurred yet because structural inflows are absent, macro catalysts are lacking, and the broader downtrend from the all-time high persists with fragile liquidity and resistance ahead.
Looking Ahead
While the recent technical and market developments suggest a pause in the bearish trend, the broader market remains cautious. Analysts and traders will be closely watching for any signs of sustained buying interest and macroeconomic shifts that could provide a more definitive turning point for Bitcoin.
In the meantime, investors should remain vigilant and prepared for potential volatility as the market continues to navigate through this transitional phase.
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