The fact that it is not eating is not a good sign of it recovering. When is that last time it ate? Anemones losing their zooxanthellae is a common problem among newbies (so I've read). This can be from a few factors (and I'm quoting the internet): lack of light, poor water quality, or the wrong color light spectrum. When it starts to shrink, it is because it is losing nutrients and oxygen that are supplied by the zooxanthellae. If this happens, the anemone can lose strength and float about the aquarium, and will probably die soon afterwards.

That being said, I don't know these things from experience, but I wanted you to get an answer quickly. I researched your specific anemone. The care level for this species is moderate to difficult, so you being a beginner I probably wouldn't recommend this species for you at the moment. However, you've already purchased it so I will tell you what I think the problem is, and how you should fix it. It could be because it is in an aquarium that is too small. The minimum tank size for the BTA is 30 gallons on both live aquaria and fish lore (both reputable sites).

I guess your lights provide high lighting? I do not have a saltwater aquarium, however, I do know how aquatic animals physically function. So if the light is not what it needs, it will feel like it has to release the zooxanthellae so they don't both die.

It is puffing, and that is normal for anemones since they need water for their cells and normal functions. Your water quality is near perfect for your anemone. The temperature should be a little cooler though (around 75-79 degrees F). What is your specific gravity and water circulation? Do you have a protein skimmer and activated carbon filtration?

My diagnosis is either not enough lighting or the wrong spectrum of lighting.
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Phishie
Site Coordinator

"An ounce of prevention is worth a pound of cure."

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