While Bitcoin (BTC) remains more than 42% below its all-time high of $126,000, several technical setups suggest that the price range of $60,000 to $72,000 could be a new lower range before a sustained recovery.
Key considerations:
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Bitcoin’s double bottom pattern suggests that a reversal is underway.
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A bottom may form in the coming weeks as the BTC gold ratio revisits previous all-time lows.
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Bitcoin price is retesting a multi-year trend line that marked the previous bottom of the market.
BTC’s double bottom pattern indicates a trend reversal
Bitcoin recovered 21% to hit a 30-day high of $74,000 from a low of $60,000 on February 6, before hitting $72,500 on Thursday.
Crypto analyst Jelle said the “Adam and Eve bottom is still playing out” on Bitcoin’s 12-hour chart.
The Adam and Eve bottom is an upside reversal chart that shows a transition from a downtrend to an uptrend. This is a variation of the classic double pattern that appears after a downtrend and indicates that selling pressure is likely to ease.
related to: Bitcoin’s bullish momentum is gaining momentum, but the $78,000 mark remains elusive
The pattern confirmed that the price closed above the neckline (the peak between the two bottoms) at $70,000 on Wednesday, as shown in the chart below.
The bulls need to “hold the breakout zone, or we’re headed for a bad divergence before we go down again,” the analyst added.
Earlier, Cointelegraph reported that a slowdown in profits was a necessary condition for BTC’s ability to hold $70,000 and confirm a recovery.
The Bitcoin-Gold chart is flashing another bearish signal
As of March, the price of Bitcoin has been in a 13-month downtrend against gold since its peak in December 2024.
When Bitcoin falls against gold, it reduces the feeling of risk with investors, which reduces the exposure of BTC. This reflects fears of macroeconomic instability, geopolitical uncertainty or liquidity pressures that favor gold.
“In the previous 3 periods, it took about 14 months to go from peak to trough,” Coinbureau CEO Nic said in a post on Thursday at X, adding:
“These also coincided with the bottom of the bear market.”
As the correlation bottomed out at the end of 2022, BTC price also hit a macro low of $15,500 before rallying 352% to reach its previous record high of $73,800 in March 2024.
A similar pattern occurred in 2018 and 2014, when the price of Bitcoin increased from 300% to 450% in one year after the BTC/XAU pair went down.
Therefore, the current 13-month decline from the recent peak of the ratio suggests that the bottom may be near.
Bitcoin’s bullish channel indicates the bottom of the cycle
Data from TradingView shows that BTC price has retested the multi-year support trend line on the monthly time frame.
The chart below shows that this trendline previously marked the bottom of the bear market in Bitcoin as seen in 2018 and 2022.
“Bitcoin is now approaching historic lows on the trendline,” trader and analyst Coinvo Trading said in a video post on X, adding:
“If history ends, Bitcoin will retest this trend line and then move above $500,000.”
Fellow analyst Rect Fencer said he “believes BTC’s bottom is in” after seeing a similar pattern in the weekly time frame, and the price retested the trend line that marked the 2022 bottom.
As reported by Cointelegraph, several technical indicators suggest that Bitcoin is approaching a potential high, including the Relative Strength Index (RSI).
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