A renewed test of the $58,000 area could ultimately help reset positioning and spark fresh demand for Bitcoin, according to an executive at Deribit.
Jean-David Péquignot, Deribit’s chief commercial officer, said the cryptocurrency’s broader bullish structure has been technically “broken” and will remain under pressure unless it decisively reclaims $85,000. Bitcoin has traded in a $60,000 to $70,000 band over the past week, leaving it about 45% below the record high reached in October. After slipping under $85,000 in late January, it is now heading toward a fourth straight weekly decline.
“Until the market reclaims $85k, the longer-term chart remains broken, and the path of least resistance technically remains lower,” Péquignot said at the Consensus Hong Kong conference.
A sustained recovery above $85,000 would signal that buyers have absorbed the overhead supply that disrupted the prior rally and restored upward momentum. Bitcoin was recently changing hands near $66,600, well short of that key threshold and still vulnerable to additional downside.
On the support side, Péquignot identified $60,000 as a critical level. The market nearly tested that zone earlier this month as Bitcoin weakened alongside software stocks. He described $60,000 as a major psychological benchmark where large buy walls — clusters of significant purchase orders — have historically been concentrated.
“If $60k fails to hold on a closing basis, the 200-week MA is the next logical, and possibly final stop for this correction,” he said.
The 200-week simple moving average (SMA) is closely watched by long-term investors as a potential bear-market floor. Since 2015, multiple Bitcoin downturns have found support near this indicator, strengthening its reputation among traders seeking value during extended pullbacks. The average is currently positioned around $58,000, a level that could attract renewed accumulation if reached.
