Bitcoin found footing near the $70,000 level in Monday trading, following a volatile week that saw the digital asset plunge to around $61,000 before staging a partial rebound. The cryptocurrency's price action reflects a market grappling with recent losses, still trading approximately 44% below its October 2025 peak above $126,000.
Analyst Confidence Amid Volatility
Bernstein analyst Gautam Chhugani characterized the recent sharp decline as a "crisis of confidence," suggesting underlying fundamentals remain intact. Despite the pullback, Chhugani reiterated his year-end price target of $150,000 for Bitcoin. He downplayed structural concerns, stating, "Nothing broke, no skeletons will show up," while acknowledging cryptocurrency currently competes for attention in "an AI world."
Market participants are closely monitoring spot Bitcoin exchange-traded fund flows and miner activity for signals of a potential market bottom. The mining difficulty adjustment is being watched as a real-time indicator of pressure on network validators, with some analysts noting past selloffs have often bottomed near Bitcoin's production cost.
Divergent Views on Market Positioning
Other industry observers offered varied perspectives. Fundstrat's head of digital assets, Sean Farrell, reported being 80% net long but maintaining flexibility for a potential retreat into the $50,000 range. Charles-Henry Monchau, CIO at Syz Group, pointed to evolving U.S. digital-asset regulation and growing institutional preparation for asset tokenization as longer-term positives.
Technical analysts highlighted the 200-week simple moving average as a key level drawing crowded positioning. Meanwhile, broader risk sentiment continues to influence Bitcoin, with fresh risk aversion, sustained ETF outflows, or further miner capitulation cited as potential catalysts for renewed downward pressure.
In related market movements, Ether, XRP, and Solana each posted gains of roughly 1.5% over a 24-hour period. U.S. equity indices also advanced, with the Nasdaq climbing 1% and the S&P 500 adding 0.5%.
The $70,000 level now represents a critical psychological threshold for traders—less a celebration point than a defensive line that will test buyer conviction if challenged by another downturn.
