Since Bitcoin (BTC) plunged to $58,115 on Thursday, many crypto analysts have speculated whether it was the cryptocurrency’s bottom for this cycle. On Tuesday, crypto analyst Jelle remarked that last week’s fall may not actually have been the BTC bottom many are hoping for.
Bitcoin is now entering the bottom zone
In an X post, crypto analyst Jelle shared their thoughts on the top cryptocurrency’s price action over the past week. They shared the following chart which shows BTC’s movements over the last 3 bottom zones, starting all the way back from 2014.
In their analysis, Jelle noted that every crypto market has so far bottomed well below the 0.618 Fibonacci retracement level of the bull market that preceded it. This has held true during the bottoms created in 2015, 2019, and 2023.
For the uninitiated, the 0.618 retracement level is a key Fibonacci ratio used in technical analysis, that marks an area where a price pullback is likely to pause during a larger trend.
It is derived from the Fibonacci sequence and is widely watched because markets tend to react strongly around this level, treating it as support in uptrends or resistance in downtrends.
Adding, Jelle said that BTC is now appearing to be reaching this so-called bottom zone once again. The analyst stated that how much deeper BTC falls before it finds this bottom remains to be seen.
Offering a slightly contrasting take, crypto analyst Michael van de Poppe said that, so far, “nothing has changed” for BTC. He added that the digital asset is still exchanging hands under a crucial resistance zone, which equals the impact of the 200-week moving average (MA).
Poppe shared the following chart, noting that if BTC manages to push through the $61,000 resistance level, then the market will likely see a stronger move upwards to the $65,000 area and “potentially even higher.”
Data points toward deeper pullback
Exchange data from leading trading platforms like Coinbase and Binance suggests that BTC is likely to see more losses before any meaningful trend reversal. On Friday, exchange data suggested that the BTC long trade is way too overcrowded, creating ripe conditions for a long-squeeze.
Macroeconomic forces like higher-than-expected inflation reading are further weighing the top digital asset down. Despite the pessimistic outlook, crypto asset manager 21Shares is confident that BTC will recover to $100,000 by the end of 2026.
