Bitcoin $70k Flush Would Reset Cycle, Not Confirm New Bear Market:...
The likelihood of a Bitcoin correction to $70,000 has increased, but one analyst said the price drop would confirm a macroeconomic reset, rather than the start of a new bear market.
Bitcoin’s (BTC) recent price weakness has revived investors’ concerns of a deeper downturn, but several market analysts argue that an extended correction may be more constructive over the longer term.
Analysts say Bitcoin’s downside risk is centered about $65,000 to $75,000.
A potential three-day bullish divergence is forming, a setup that could align with a local bottom once momentum stabilizes.
Crypto trader Jackis said that the current move is a macroeconomic range for 2025, noting that even a decline to $70,000 would not resemble prior bear markets. Unlike 2022 or early 2024, the current drawdown lacks systemic macro-driven risk-off pressure, instead reflecting a rotation of supply from early holders to institutional participants.
Meanwhile, market analyst Jelle highlighted a potential bullish divergence forming on Bitcoin’s three-day chart. The previous three-day divergences in this cycle have coincided with local bottoms, although the trader said that a confirmation requires additional time and consolidation.
Julien Bittel, the head of macro research at Global Macro Investor, reinforced this view by pointing to Bitcoin’s historical behavior following oversold RSI readings below 30.
According to data, Bitcoin tends to track a well-defined recovery path after such conditions emerge. While short-term volatility remains likely, Bittel argued that bases often take time to form and are usually accompanied by choppy price action before a sustained uptrend resumes.
Bittel contends that the traditional four-year halving cycle is no longer the dominant driver of Bitcoin’s price behavior. Instead, extended debt refinancing cycles and evolving liquidity dynamics suggest the current market structure could persist well into 2026.
Related: Bitcoin price at ‘critical’ point as whale moves $348M BTC to exchanges
Source: CoinTelegraph
