Bitcoin Outlook: Is 60k the Bounce Zone or a Trap Door to 50k?
By Matt Simpson, Market Analyst
Date: 23/02/2026
Bitcoin has experienced a significant decline, falling 53.5% over the past 17 weeks, leading to a bearish sentiment in the market. Currently, the price is testing the critical support level of $60,000. Analysts are debating whether this level will act as a rebound point for bulls or if it will lead to further declines towards $50,000.
Market Analysis
The recent price action indicates that while bears have dominated the market, there are signs that bulls may be preparing to step in. The Relative Strength Index (RSI) has entered oversold territory, suggesting a potential for a reversal, although this indicator is not always reliable for timing such moves.
Technical Indicators
The weekly chart shows a steep decline from the October high, with the price hovering just above the $60,000 mark. The presence of an elongated lower wick on the recent swing low indicates that buyers are attempting to defend this support level. Additionally, the price has closed just below the 200-day simple moving average (SMA), which is another critical indicator to watch.
Future Projections
If the price holds above $60,000, bulls may target higher resistance levels at $70,802 (200-week SMA), $75,000, and $80,000. However, if the price breaks below $60,000, it could lead to a swift decline towards $50,000 or even lower, with a high-volume node (HVN) at $47,145 being a potential target.
Current Sentiment
Despite the bearish trend, there is a cautious optimism among some traders who believe that the $60,000 level could provide a bounce. The daily chart shows a breakdown from a symmetrical triangle pattern, with the price currently testing the $60,000 support. The 10-day exponential moving average (EMA) is acting as resistance, and the volume behind the recent moves suggests that bears are still active in the market.
Conclusion
Traders are advised to monitor the $60,000 level closely. A bounce above this level could signal a shift in momentum, while a break below could open the door for further declines. The coming days will be crucial in determining the short-term direction of Bitcoin prices.