Bitcoin (CRYPTO: BTC) has spent a prolonged stretch around $60,000, which prominent market commentator Scott Melker says may be part of a bottoming process.

Technical, Market Structure Signals

In a podcast on July 31,Melker argued that several technical and market-structure signals resemble conditions seen near previous Bitcoin cycle lows.

Recently, BTC traded about 10% above its July low near $58,000, while sentiment remained firmly in the fear zone.

Melker highlighted Bitcoin’s deeply oversold weekly relative strength index, a bullish divergence and its recovery above the 200-week moving average as encouraging signs.

Bitcoin also bounced near its 50-month moving average, a level that has historically aligned with major accumulation zones.

He cautioned that Bitcoin has not yet reclaimed key resistance levels and could still revisit the lower end of its range.

Forced Sellers Have Already Sold

Melker further noted that many entities previously expected to support Bitcoin prices have instead become sellers.

Several digital asset treasury companies have liquidated holdings or abandoned Bitcoin accumulation strategies after their stock premiums collapsed.

Strategy (NASDAQ:MSTR), led by Michael Saylor, recently sold Bitcoin and shifted its focus toward increasing cash reserves and managing its preferred-stock obligations.

Despite Strategy stepping away as a consistent buyer, BTC prices have remained relatively stable.

Bitcoin miners have also sold holdings and redirected capital toward AI infrastructure.

"Every supposed buyer of last resort became a forced seller, and Bitcoin is still here," Melker said.

Whales Return As Retail Capitulates

Spot Bitcoin ETFs recorded significant outflows during the correction as retail investors rotated towards AI and semiconductor stocks.

However, large Bitcoin holders have reportedly resumed accumulating near the $60,000 region after selling into the rally toward Bitcoin’s October 2025 all-time high near $126,000.

Melker characterized the trend as a transfer of supply from short-term and emotionally driven investors toward longer-term holders.

Falling exchange reserves also suggest investors are withdrawing Bitcoin into self-custody instead of preparing to sell.

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