Bitcoin price reaches bottom of four-month range after sharp decline

The Bitcoin price is currently at the lowest point of a four-month trading range. After a sharp correction of 25% in just four weeks, Bitcoin now stands at $62.200. an increase of 2.7% over the past 24 hours. Analyst CrypNuevo indicates that he expects a strong bounce, not so much because this is a fixed range, but because the decline is technically extremely overextended.

Bitcoin is available at OKX and Bybit.

Sharp dip to the range lows

According to CrypNuevo’s analysis, the Bitcoin price is now precisely at the bottom of a range that has held for four months. The chart clearly shows a zone around $60.000 as support, while the top of the range is around $80.000, The recent downward move was extremely rapid, with a loss of 25% in four weeks.

That speed is an important signal for the analyst. A decline of that magnitude in such a short period technically creates an overextended situation, which increases the chance of a rebound. The intention is not necessarily that the range remains intact, because ranges always break eventually. The expectation is simply that the market will find temporary rest at this level and bounce back.

Market context around the Bitcoin decline

The current dip occurs in a broader context of increasing pressure on the market. For instance, Bitcoin investors are sitting on a record loss of $920 billion, which well illustrates the severity of the correction. Additionally, Bitcoin ETF outflows have reached a record level of 2,450 BTC per day, indicating that institutional investors remain cautious for now.

Nevertheless, the technical picture for the short term is cautiously optimistic. If the range lows hold as support, a recovery move toward higher levels within the range is conceivable. Whether Bitcoin can also break through the top of the range depends partly on broader market conditions and whether selling pressure from ETF flows diminishes.