Bitcoin’s recovery near $85,000 shows solid buying at lower levels, signaling that the downside may be limited.
Bitcoin (BTC) has risen back above the 200-day simple moving average ($83,754), indicating that the bulls are attempting a comeback. The failure of the bears to capitalize on the drop below the 200-day SMA shows that selling dries up at lower levels.
However, Bitcoin may not be out of the woods yet. Crypto analyst Matthew Hyland said in a video posted to X that Bitcoin needs a weekly close above $89,000 to confirm a bottom.
A move above $89,000 could liquidate roughly $1.60 billion in short positions, according to CoinGlass data. If that does not happen, Hyland warns that Bitcoin will fall into the $74,000 to $69,000 range.
