Bitcoin's Road to Recovery: Overcoming Challenges and Breaking Resistance

Bitcoin's price has been on a wild ride since its peak of $126,000 in October 2025. The cryptocurrency's value plummeted to as low as $60,000 in February 2026 due to a combination of factors, including ETF outflows and leveraged positions unwinding.

The recent selloff was driven by institutional investors, who now play a central role in Bitcoin's price direction. BlackRock's iShares Bitcoin Trust attracted the largest share of inflows in April, accumulating around $1.97 billion in spot Bitcoin ETFs.

However, there are several challenges that need to be overcome before Bitcoin can recover to its previous highs. The Federal Reserve's hawkish stance on interest rates may continue to weigh on the cryptocurrency's price, and a supply overhang introduced by Strategy's buying at higher prices could also hinder its recovery.