Bitcoin Dipped Below $60,000 Then Bounced But the Weekly Damage Is Already Done

Bitcoin fell as low as $59,200 late Wednesday before buyers stepped in and pushed it back to around $61,700 on Thursday. That recovery looks better than it feels BTC is still down 2.4% over 24 hours and 5% on the week.

The rest of the market took even harder hits. Ether dropped 2.8% to $1,616 and is down 7.9% on the week. XRP fell to $1.07 for a 9.2% weekly loss. Solana slid to $68.

Stocks Bounced Back but Crypto Did Not Follow

The AI trade that dragged crypto lower earlier this week staged a strong comeback overnight. Micron jumped around 15% after its sales forecast smashed Wall Street estimates, reviving confidence in AI spending. Nasdaq 100 futures rose 1.8% and South Korea’s Kospi surged as much as 6%.

Crypto did not join the party. Bitcoin’s pressure is now coming from its own set of problems continued outflows from US spot bitcoin ETFs, a hawkish Federal Reserve and a US dollar that has climbed to a seven month high. A stronger dollar makes bitcoin more expensive for foreign buyers and pulls money out of risk assets.

A Crypto Winter Warning Is Flashing

Bitcoin is hovering near its 200-week moving average a key long-term trend line. The last three times BTC touched this level the weakness lasted months, around nine months in 2015, six months in 2018 and roughly six quarters after the 2022 collapse. The firm says the pattern points to an extended crypto winter rather than a quick bounce.

The next key test is the $61,800 to $62,000 range, where resting orders could either spark a short squeeze or act as resistance. If support breaks further, Kuptsikevich sees $55,000 as a plausible cycle low. US inflation data due later today could be the next catalyst a hot reading reinforces the hawkish Fed, while a soft one could ease pressure on crypto.