The recent steep drop in Bitcoin’s value has left many investors pondering whether the worst is over or if more declines are on the horizon. Market strategist Gareth Soloway suggests that current chart formations indicate a mixed perspective, where short-term gains may be possible, but long-term challenges remain.
Emerging short-term bullish indicators
At present, Bitcoin is trading around the mid-$60,000 mark after experiencing a notable decline from its previous peaks. According to Soloway, recent market movements suggest that a short-term bullish trend could be developing within an overarching negative trajectory.
He characterized this scenario as “a macro bearish pattern enveloping a micro bullish pattern,” indicating that price movements in the coming days or weeks might favor an upward correction despite the prevailing weak multi-month trend. Technical signals such as reversal candles and consolidation patterns hint at potential near-term rebounds.
Such counter-trend rallies are frequently observed during larger corrections when traders seize opportunities to buy dips before clarity about broader trends emerges.
The macro trend still indicates downside risks
Even with these short-lived positive signs, the overall chart structure continues to depict lower highs and lower lows—a classic bearish formation. Soloway noted that this larger setup resembles what is known as a “bear flag,” which historically tends to culminate in further downward movement.
If critical support levels fail to hold up, additional declines could ensue. Specifically, breaking below the $60,000 threshold might lead to even steeper losses as prices could gravitate toward significantly lower support areas.
A resistance zone between $80,000 and $85,000
On the upside of things lies a robust resistance zone between approximately $80,000 and $85,000—an area where prior price pivots have generated substantial selling pressure. A sustained breakthrough above this range would be necessary to invalidate the broader bearish framework and signal stronger recovery prospects.
Prior to such an event occurring, many traders anticipate Bitcoin will continue navigating through volatile consolidation phases marked by sporadic rallies followed by renewed selling pressures.
The longer-term outlook hinges on global market dynamics
Soloway emphasized that wider financial market conditions—especially equity performance—could significantly influence Bitcoin’s next major move. Should global markets undergo substantial corrections; crypto assets may experience heightened pressure as investors look to minimize exposure to riskier investments.