The long-term rally of the leading cryptocurrency is currently considered “broken” and will not show signs of real recovery until the value exceeds 85,000 dollars. This was stated by Jean-David Péquignot, chief commercial officer of the derivatives exchange Deribit, this February 13 during the Consensus Hong Kong conference, warning about the current structural fragility.
Having stabilized in a range between 60,000 and 70,000 dollars over the last week, the asset is trading 45% below its all-time high from October. This downward trend, which adds up to four consecutive weeks of losses, has caused the Bitcoin price to sit in bearish territory, generating significant uncertainty among investors looking for clear signs of an imminent bullish reversal.
According to Péquignot, the path of least technical resistance remains downward as long as the market fails to reclaim the critical level of 85,000 dollars. Surpassing this figure would confirm that buyers have retaken full control, having absorbed all the excess supply that deteriorated growth prospects, thus allowing the ecosystem to regain the confidence necessary to push valuations toward new highs again.
60,000 dollar psychological support under technical scrutiny
The 60,000 dollar level is emerging as the next major psychological support barrier to prevent a larger crash in the coming sessions. Historically, large buy walls have resided in this zone, serving as an operational base, protecting the market’s structural integrity against the massive liquidations that often accompany severe corrections within the cryptocurrency sector.
However, if the value fails to hold above this support at the close, the next logical target would be the 200-week simple moving average (SMA). This technical indicator, currently located near 58,000 dollars, is considered by many traders as the “holy grail” for identifying market bottoms, marking the final point of corrections in multiple bearish cycles recorded since 2015.
Due to the recent correlation with software stocks and the technology sector, the asset has shown persistent weakness that concerns derivatives analysts. Thus, the range between 58,000 and 60,000 dollars is established as the ultimate support, where bargain hunters could intervene to reactivate buying momentum and finally stabilize the Bitcoin price after months of volatility.
What does this technical breakdown mean for the future of investors?
The loss of 85,000 dollars as a support base has invalidated the more optimistic projections that were handled at the start of the current quarter. For investors, this implies a phase of prolonged consolidation where patience will be the primary virtue, avoiding entering premature long positions before the market demonstrates a real capacity to absorb the institutional selling pressure that dominates now.
Likewise, the drop below key levels suggests that market sentiment has shifted from euphoria to extreme defensive caution. Therefore, the recovery of the long-term rally will depend on external macroeconomic factors and the entry of new institutional capital, capable of breaking the current negative inertia that keeps the asset in a spiral of decreasing prices and latent volatility that scares off retail traders.
In conclusion, the outlook for the world’s largest digital asset remains bleak as long as there is no forceful bullish breakout above the mentioned levels. The market is expected to continue closely monitoring behavior at 58,000 dollars, as the defense of this level will determine the success or failure of stabilization attempts for the Bitcoin price during the current financial correction season.
