While buyers successfully defended the $58K-$60K support zone and created a series of lower lows on lower time frames, Bitcoin is now approaching a confluence of technical resistance where bullish momentum will face its biggest test since the breakout from the mid-$70K area.
Bitcoin price analysis: daily chart
On the daily time frame, Bitcoin remains below the 100-day and 200-day moving averages, which continues the downtrend and maintains the broader bearish structure. However, recent price action has become increasingly constructive.
After a sharp sell-off towards the $58K support area, Bitcoin formed a higher bottom while the RSI continued to recover and move higher. The Momentum indicator has now risen back above its mid-line, suggesting that the downward pressure has weakened significantly compared to the strong decline seen throughout June.
The price is currently approaching a major bearish order block between $65K and $66.5K. This area also represents the last higher-low structure before the recent decline, making it a crucial area for confirming market structure. A decisive daily close above this resistance area could trigger a change in character and open the door towards the larger resistance range around $72,000 to $74,000.
However, failure to reclaim this area would sustain the broader downtrend and could lead to another spin towards the $60,000-$61,000 support area. Therefore, the reaction around the current resistance area is likely to determine whether the recent rally will develop into a trend reversal or remain a corrective bounce.
BTC/USDT 4-hour chart
The 4-hour chart shows a much stronger recovery structure. Since sweeping liquidity below the $58K support area, BTC has registered a series of higher lows and higher highs as it advances towards the upper border of the descending channel that has contained the price since mid-June.
The market is now pressing directly against channel resistance near $64K-$65K while simultaneously testing the lower end of the broader supply zone between $65K-$66K. This creates a pivotal technical zone where buyers must prove their ability to maintain momentum.
A break above the downtrend line and subsequent recovery of the bearish system block would provide the first meaningful confirmation that the corrective structure has ended. Such a move would likely lead to a change in character and increase the likelihood of a continuation of the rally towards the $72,000 to $74,000 resistance area.
On the downside, the previous intra-range liquidity area of $61K-$62K has now moved into an important support area. As long as Bitcoin remains above this area, the short-term bullish structure remains in place.
Sentiment analysis
The 1-week liquidation heatmap continues to show a significant concentration of liquidity above the current market price, especially within the $65K-$67K area. This corresponds almost perfectly with the bearish system block and channel resistance shown on the technical charts, creating a strong confluence area that can attract the price in the near term.
It is worth noting that the liquidity data confirms the technical setup. The resistance area marked on the charts corresponds directly with one of the largest clusters of liquidations visible on the heat map, reinforcing the idea that Bitcoin may attempt to sweep out this general liquidity before determining its next directional direction.
Below the market, liquidity remains relatively weaker near current levels, while larger concentrations are positioned much higher around the mid-$60K region. This suggests that the path of least resistance may remain bullish in the short term as market makers seek to target these leveraged positions.
If Bitcoin succeeds in sweeping the liquidity pool between $65K and $67K and securing acceptance above the bearish order block, the likelihood of a broader uptrend continuing will increase significantly. Conversely, if a liquidity sweep is followed by a sharp rejection, it could indicate that the move was primarily driven by liquidity and increase the risk of another corrective decline towards the $61,000 support area.
For now, both the technical structure and liquidation positions continue to favor a bullish liquidity grab, with the $65K-$67K area emerging as the most important near-term battleground for Bitcoin.
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