Bitcoin Tests the $60,000 Floor: What Analysts Say About This Critical Support Zone

The recent price action around Bitcoin has many in the market focused on one key number: $60,000. According to analysis from Compass Point, this region—along with the $60K to $68K range—represents where the current downturn might finally establish its bottom. With Bitcoin recently trading near $68,000 (currently up 1.48% over the past 24 hours), the market appears to be flirting with this crucial support level that could determine the next major move.

The research suggests we’re entering a transitional phase where both bears and bulls are testing their resolve. While short-term volatility remains tilted to the downside, the framework of support levels paints an interesting picture of where major buyers might begin stepping in more aggressively.

The $60K-$68K Zone: Where History Meets Current Technicals

Compass Point’s analysis identifies the $60,000 to $68,000 band as the strongest potential bottom, with particular conviction around the $65,000 level. This isn’t arbitrary—the data behind it is compelling. Research shows that approximately 7% of long-term holder supply was accumulated in this exact zone, indicating that patient, experienced investors have historically found value here during previous cycles.

This historical conviction matters because it suggests structural support. When large holders acquired significant amounts at these prices in the past, they’re unlikely to sell without a compelling reason. The $60K level therefore acts as both a psychological anchor and a technical floor where buying pressure might resurface.

Resistance Overhead and the Pressure from Outflows

Bitcoin’s recent break below $81,000—dropping as far as $74,500 in recent days—reflects where the average cost basis sits for both spot ETF investors and the broader market. This context is important: when price falls through where the average buyer bought, it triggers selling and loss-taking.

Since mid-January, Bitcoin spot ETFs have experienced nearly $3 billion in net outflows, signaling institutional hesitation. With more than half of ETF holdings now underwater, the outflow pressure could persist. The $81,000 to $83,000 zone may now function as overhead resistance, capping bounces and limiting relief rallies.

The Structural Vacuum: Why $70K-$80K Matters Less Than You Think

Between $70,000 and $80,000, there’s a notable structural gap. Compass Point describes this region as an “air pocket”—an area lacking meaningful support where price can accelerate downward if selling persists. Less than 1% of long-term holder supply accumulated in this range, meaning there’s minimal buy interest to arrest a decline.

This structural weakness matters for risk management. If downside pressure continues, price could slide through this zone relatively quickly, putting the focus squarely back on the $60,000 support band.

The Worst-Case Scenario: What Breaking $60K Would Mean

Should Bitcoin break decisively through the $60K floor, analysts point to approximately $55,000 as the next significant level. However, they emphasize this would require extreme market stress—similar to 2022 when a broader equity bear market combined with major cryptocurrency bankruptcies to push Bitcoin below its average cost basis.

In other words, falling through $60K isn’t impossible, but it would likely require systemic financial stress, particularly contagion from U.S. equities markets. The crypto market alone probably can’t generate that magnitude of selling pressure.

Where Does This Leave Us?

The current price action around $68,000 keeps Bitcoin within the predicted support zone, suggesting the downtrend may indeed be consolidating rather than accelerating. The $60,000 level represents the line in the sand for both bulls defending the bull market thesis and bears arguing the cycle has broken.

For context on the broader market: BNB is trading near $615.60 (up 3.43%), while XRP sits around $1.40 (up 1.89%), suggesting some resilience in alt-coins even as Bitcoin tests its key support.

Compass Point’s conclusion is straightforward: the bear market appears to be entering its final stages, with the $60K–$68K range serving as the critical floor. Further downside remains possible, but a decisive breakdown would signal broader financial stress rather than cryptocurrency-specific weakness. Caution and disciplined risk management remain essential.