Bitcoin’s relief rally lost momentum after the cryptocurrency was rejected near $65,500, leaving analysts divided over whether the latest pullback is the start of another decline or simply a pause before a larger recovery.
Although BTC has surrendered part of its recent gains, some market watchers believe reclaiming an important support level could still pave the way for further upside.
Why Bitcoin Stalled at $65,500
Bitcoin rallied nearly $4,000 in a single day after softer than expected U.S. inflation data boosted market sentiment, climbing to its highest level in three weeks before encountering strong selling pressure around $65,500.
According to analyst Crypto Rover, the rejection follows a pattern seen repeatedly throughout the current bear market.
He explained that each relief rally has carried Bitcoin toward the Short Term Holder Realized Price, a level that represents the average purchase price of recent investors. Once prices return to that point, many traders choose to exit their positions at break even, creating significant selling pressure.
Crypto Rover noted that the same pattern unfolded following the October market crash, when Bitcoin’s recovery stalled near $115,000. Similar rejections also occurred during the January rally around $95,000 and again during the mid May advance toward $83,000.
Analyst Merlijn The Trader shared a similar outlook, saying the move to $65,500 resembled a classic bull trap.
He believes Bitcoin could still revisit the $58,500 to $60,000 range before establishing a more durable bottom.
In his view, the $63,000 level has become a critical support zone. Holding above it could allow Bitcoin to build enough momentum for another attempt at breaking through $65,500. However, losing that support would increase the likelihood of another decline below $60,000.
Some Analysts See Reasons for Optimism
Not everyone interprets the recent price action as bearish.
Market analyst Jelle argued that Bitcoin’s recovery above its previous trading range represents an encouraging development for buyers and marks an important technical victory.
At the same time, he cautioned that Bitcoin has historically moved slowly during the summer months, making it unwise for investors to become overly optimistic too quickly.
While Jelle believes the latest rebound is a positive first step, he stressed that Bitcoin still needs to overcome several key resistance levels before a broader bullish trend can be confirmed.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
