Bitcoin Outlook: Is 60k the Bounce Zone or a Trap Door to 50k?
By Matt Simpson, Market Analyst
Date: February 23, 2026
Market Overview
Bitcoin has experienced a significant decline of 53.5% over the past 17 weeks, leading to a critical examination of its current price level around $60,000. This decline has raised questions about whether this level will serve as a support point for a potential rebound or if it will lead to further declines towards $50,000.
Technical Analysis
Current Price Action
The weekly chart indicates that Bitcoin futures have dropped sharply from their October highs, nearing the $60,000 mark. 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.
Recent price action shows a swing low with a long lower wick, indicating buying interest just above $60,000. The price has managed to recover some losses, closing just below the 200-day simple moving average (SMA). The formation of two inside bars in the upper half of the previous bearish candle suggests that bulls are attempting to regain control.
Support and Resistance Levels
Traders are advised to monitor the $60,000 level closely, as it is pivotal for future price movements. If Bitcoin can hold above this level, bulls may target higher resistance levels at $70,802 (200-week SMA), $75,000, and $80,000. Conversely, a break below $60,000 could lead to a decline towards $50,000 or even the high-volume node (HVN) at $47,145.
Market Sentiment
The current market sentiment appears to be cautious, with bears attempting to push prices lower after a breakdown from a symmetrical triangle pattern. The daily chart shows that Bitcoin futures are trading below $65,000, with the 10-day exponential moving average (EMA) acting as resistance. Despite bearish pressure, the significance of the $60,000 support level suggests that a bounce is possible, and traders should be prepared for potential short-covering rallies.