Bitcoin continues to trade in a tight range, but beneath the surface, a structural weakness is becoming increasingly evident. Price holding below the key $72,000 level, now acting as resistancethe broader technical outlook remains fragile and any near-term consolidation could simply mask the underlying downside risk.
Bitcoin enters a clear corrective phase
Bitcoin has entered a clear correction phase after peaking in the $120,000-$125,000 region. Crypto Analyst Alejandro₿TC Remarks. Remarks that the weekly structure has broken to the downside, with the final leg taking place impulsively, a sign that momentum currently favors sellers over buyers.
The key level to watch is the $72,000 to $74,000 area. This area, which previously served as strong support, has now been lost and transformed into resistance. As long as Bitcoin continues to close below this range on the weekly timeframe, any upward movement should be viewed as a corrective bounce rather than confirmation of a sustained trend. reversal.
On the other hand, the $50,000-$52,000 region stands out as the main magnet. This area represents a significant weekly demand area and the base of the previous impulsive rally. If bearish As pressure persists, this becomes the most logical target for a deeper retracement.
The next monthly close, in 11 days, could be decisive. A close below $72,000 would confirm the breakout and increase the likelihood of further decline. Structurally, the walk remains weak below this level, while a decisive recovery above $74,000 would mark the first significant signal of a return of strength.
Squeeze Intensifies Near $68,000
With volatility As prices trade in an increasingly narrow band, Bitcoin continues to wrap tightly around the $67,000-$68,000 region. The lack of a decisive move in either direction suggests that the market is building energy for a larger expansion move.
According to Columbus, liquidity continues to grow above the $70,000 level and notable bids remain between $64,000 and $66,000. With liquidity piling up on both sides, the market is effectively stuck between opposing forces, waiting for a catalyst.
The longer Bitcoin remains trapped in this tightening structure, the more aggressive the potential risk will be. burst tends to be. Squeeze phases like this usually end with a strong move, as one side of the market is forced to liquidate its positions.
From there, continued acceptance above the $69,500-$70,000 area would likely open the door for momentum towards the more liquid areas. On the other hand, failure to recover this threshold keeps inquiries down around $60,000, especially if offers start to weaken under pressure. The next decisive decision will likely depend on which side of liquidity is targeted first.
Featured image from Pixabay, chart from Tradingview.com
