Bitcoin Reclaims $68,500 Moving Average as Downside Pressure Eases, But Bear Market Structure Persists

Bitcoin reclaimed its 20-day moving average near $68,500 after downside momentum weakened, with the $62,500 support level tested three times without breaking, BlockBeats reports on March 3. Indicators including RSI and Stochastic show bullish divergences, while compressed volatility, rising ETF inflows and the disappearance of Coinbase's discount signal tactical improvement rather than trend reversal. In derivatives markets, deeply negative funding rates created overcrowded short positioning that triggered a short squeeze, driving a rapid rebound from $63,000 and easing near-term selling pressure, though structural capital inflows remain limited and the downtrend from the all-time high is unbroken. Asset allocation models still classify Bitcoin as being in a bear market, with sentiment shifting from panic selling to restraint and potential near-term consolidation, but the medium-term direction remains unconfirmed.