March 3rd Bitcoin’s downside momentum has eased, but no structural reversal signal has emerged — keeping it firmly within a bear market regime. Notably, the token failed to accelerate lower despite bearish news tied to risk-off sentiment, suggesting downward pressure may be abating. Prices have rebounded above their 20-day moving average (≈$68,500), while Bollinger Bands are narrowing, setting the stage for potential range expansion. The $62,500 level — tested three times without breaking — stands as a key support. Additionally, RSI and Stochastic RSI are showing bullish divergences, signaling stabilizing momentum. Analysts note the market is seeing “tactical improvement,” but a trend reversal remains unconfirmed. Current volatility compression, rising ETF inflows, and the disappearance of Coinbase discounts do not align with the typical hallmarks of a fresh wave of accelerated selling. Still, Bitcoin remains classified in a bear market environment under most asset allocation frameworks, so any long positions should be viewed as tactical trades. In derivatives markets, prior deeply negative funding rates fueled crowded short positions in perpetual contracts, triggering a classic short squeeze. This drove a rapid rebound from the $63,000 low, easing short-term selling pressure. However, analysts emphasize structural capital inflows are still lacking, macro catalysts remain scarce, and the downtrend from Bitcoin’s all-time high remains intact. Overall, market sentiment has shifted from panic selling to more subdued levels. The short term may enter a consolidation phase, though the medium-term trend is still unconfirmed.
