Bitcoin holds above $59,560 long term support, analysts warn demand remains weak

Bitcoin is currently trading near $60,000, drawing renewed attention to its long term support levels. According to TradingView data, BTC is hovering around $60,157 as investors assess whether the recent correction is losing steam and if the downside risk still persists.

Long term support back in focus

One of the market’s most closely watched indicators, the 200 week simple moving average, has resurfaced as a key focal point. Analyst Ali Martinez highlighted that historically, Bitcoin has spent very little time below this level, noting it has frequently served as a robust floor during previous bear markets.

This indicator currently sits at around $59,560. Bitcoin remaining just above this support echoes earlier accumulation phases seen in past cycles, such as those in 2020 and 2022 when price rebounds followed similar tests of the 200 week average.

However, the current picture diverges from previous cycles. With Bitcoin still in a corrective phase after reaching record highs, analysts argue that a convergence of multiple bullish signals is more important than relying on any single indicator.

Demand remains subdued as selling pressure persists

Despite holding its long term support, on-chain data suggests no significant recovery in buying appetite. Citing CryptoQuant data, Ali Martinez reports that visible Bitcoin demand has stayed negative for 208 days, recently dropping to around minus 273,000 BTC.

Glossary: Visible demand is an on-chain metric that compares new Bitcoin entering circulation with existing coin movements. If it remains negative, it indicates that new supply outweighs fresh buying interest.

This measure weighs newly mined Bitcoins against previously held coins coming to market. Persistently negative readings suggest older coins are entering exchanges faster than new demand absorbs them, adding to ongoing selling pressure.

While this remark was delivered in a casual tone, the data confirms broad-based distribution across the market. Without a clear resurgence in demand, upward momentum for Bitcoin appears limited for now.

Strategy debate reignites

The market conversation has also turned toward MicroStrategy—now rebranded as “Strategy”—following a sharp pullback in the company’s share price. A satirical chart spotlighting the decline has revived criticism over its use of leveraged financing to accumulate Bitcoin.

The graphic shows MSTR shares down roughly 84.9% from their all time high. While not an official financial analysis, it’s bolstering arguments against the firm’s practice of issuing debt and preferred shares to fund Bitcoin purchases.

Nonetheless, Garlinghouse expressed his continued long term optimism for Bitcoin and described BTC as “digital gold.” He added that enduring value will stem more from real world use and adoption than complex financial engineering.

Caution dominates technical outlook

On the technical front, sellers still maintain an edge. TradingView’s summary rates the outlook as neutral, with underlying signals showing 14 sell, 8 neutral, and 4 buy ratings. The RSI is at 33—near the oversold threshold—but hasn’t confirmed a clear reversal yet.

Some short term indicators suggest sellers may be losing momentum, while the MACD remains firmly in negative territory at about minus 2,310, continuing to signal selling pressure. Bitcoin trades below all key moving averages: the 10 day EMA at $61,468, 20 day EMA at $63,107, 50 day EMA at $67,219, and 200 day EMA at $76,688. Therefore, recapturing resistance in the low $60,000s and avoiding a sustained dip below the 200 week average remain decisive for market direction.

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