Bitcoin is showing multiple technical signs that could indicate a potential market bottom is forming. Despite being more than 40% below its all-time high, analysts point to a bullish chart pattern, a historically significant ratio with gold, and a retest of a long-term trend line as evidence. These setups suggest the $60,000 to $72,000 range may establish a new floor for the cryptocurrency’s price.
Bitcoin remains over 42% below its $126,000 peak, but several technical analyses suggest the $60,000 to $72,000 zone could be a new bottom. The leading cryptocurrency recently recovered 21% from a February low, reaching a 30-day high of $74,000.
Analyst Jelle stated that an “Adam and Eve bottom is still playing out” on Bitcoin’s 12-hour chart. This bullish reversal pattern confirmed when the price closed above a $70,000 neckline.
The Bitcoin-to-gold ratio has been in a 13-month downtrend, signaling a risk-off sentiment among investors. Nic Puckrin of Coinbureau noted that previous cycles took about 14 months from peak to bottom in this ratio.
“These also coincided with bear market bottoms,” Puckrin said. Historical data shows Bitcoin posted gains between 300% and 450% a year after the BTC/XAU pair previously bottomed.
Bitcoin’s price is also retesting a multi-year ascending support trend line on monthly charts. This same trend line marked major bear market bottoms in 2018 and 2022, according to data from TradingView.
Analyst Rekt Fencer said he was “sure the BTC bottom is in” after observing a similar retest on the weekly chart. The pattern mirrors the setup seen before the 2022 market low.
