Bitcoin’s recent price action may indicate that the crypto’s selling pressure has begun to ease – although analysts warn that there are still no signs of a rebound from the bear market.
“Bitcoin failed to reduce momentum on risk-taking headlines, suggesting bearish pressure may lose momentum,” 10x Research said in a market update on Tuesday.
Analysts noted that Bitcoin (BTC) is retracing its 20-day moving average near $68,500 and that Bollinger Bands are “forming for a possible range extension” with conditions.
According to TradingView, BTC returned to just over $70,000 in late Monday trading on Coinbase, but has retreated to $68,400 at the time of writing.
Analysts said the $62,500 level was tested on three separate occasions, “reinforcing it as meaningful support.”
At the same time, “bullish divergences are emerging,” with both the RSI (relative strength index) and stochastic indicators trending higher, “the first signs that momentum may stabilize even within a broader bearish structure.”
Tactical change but not structural change
The analysts concluded that the evidence “points to an important tactical shift, but not yet a confirmed structural shift.”
Volatility is compressing, ETF flows have intensified and Coinbase’s discount has disappeared, they said, “these are not the characteristics of a market that accelerates to a fresh lower leg.”
“However, our broader allocation framework still classifies Bitcoin as a bear market mode, meaning any exposure to the upside remains tactical rather than structural.”
related to: Crypto Analyst Says Bitcoin Selling Pressure Is Almost Over
Justine d’Anetan, head of research at Arctic Digital, told Cointelegraph on Tuesday that there have been many macro and crypto events that have pushed the price down, but recently, “we’ve measured the aggressiveness to a degree” that is good for “consolidation, consolidation or at least a range.”
“The fact that selling pressure is not having much of an impact despite tariffs, the prospect of war, or previously disappointing rate cut expectations suggests that either sellers themselves are tired or there are genuine buyers at these levels.”
Deeply negative funding rates have driven up prices
Meanwhile, Bitrue head of research Andriy Fauzan Adziima told Cointelegraph that Bitcoin’s low momentum is easing, but said it was “primarily due to negative funding levels” in derivatives markets.
This “created short positions in perpetual futures and created a classic short squeeze as the price dropped sharply below $63,000, forcing heavy liquidation and reducing selling pressure through tactical easing.”
Negative funding rates mean that short sellers are paying a premium to hold their positions.
He added that no confirmed trend reversal has yet occurred “as there is no structural input, no macro catalysts,” and the broader trend from highs “remains with fragile liquidity and resistance ahead.”
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