Bitcoin’s sharp decline in recent months has left investors questioning whether the worst of the sell-off has passed or if further downside is still ahead. According to market strategist Gareth Soloway, current chart patterns hint at a mixed outlook, with short-term strength possible but longer-term risks still present.
Bitcoin is currently trading near the mid-$60,000 range after falling significantly from earlier highs. Soloway says recent price action shows a short-term bullish setup forming within a larger negative trend.
He described the situation as “a macro bearish pattern inside a micro bullish pattern,” meaning that price action over the next several days or weeks could favor a rebound even though the broader multi-month trend remains weak. Technical indicators such as reversal candles and consolidation patterns show the possibility of a near-term bounce.
Such counter-trend rallies are common during larger corrections, as traders temporarily buy dips before the broader direction becomes clearer.
Despite the short-term positive signals, the broader chart structure continues to show lower highs and lower lows, a typical bearish pattern. Soloway said that the larger structure resembles a “bear flag,” which historically often resolves with additional downside movement.
He warned that if key support levels fail, further declines could follow. In particular, a break below the $60,000 region could open the door for deeper losses, potentially pushing prices toward significantly lower support zones.
On the upside, there is a strong resistance area between roughly $80,000 and $85,000, where previous price pivots created heavy selling pressure. A sustained move above this region would be needed to invalidate the broader bearish structure and signal a stronger recovery.
Until such a breakout occurs, many traders expect Bitcoin to remain in a volatile consolidation phase, with intermittent rallies followed by renewed selling pressure.
Soloway added that broader financial market conditions, particularly the performance of equities, could play a major role in Bitcoin’s next major move. If global markets experience a significant correction, crypto assets may face additional pressure as investors reduce exposure to riskier holdings.
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