Bitcoin has decisively broken down from its multi-month rising channel, triggering a sharp sell-off that pushed the price toward a major support cluster near $65,000. The rejection at the 100-day moving average and the inability to reclaim key support levels indicate sellers remain in control in the near term, although BTC is now approaching a zone where demand previously emerged.
Bitcoin Price Analysis: The Daily Chart
On the daily timeframe, Bitcoin has invalidated the ascending channel that had guided price action for months. After failing to hold above the channel’s lower boundary, BTC accelerated lower and lost the 100-day moving average around $73,500, a level that had acted as dynamic support during the recovery.
The breakdown below the $73,000–$74,000 region confirms a bearish structural shift and raises the likelihood of a deeper correction. The asset is currently testing an important support zone near $65,000–$66,000, marked by a horizontal demand area that previously triggered strong buying interest.
Any recovery attempt will likely face selling pressure between $70,000 and $73,000, while a broader relief rally could target the former channel support and the 200-day moving average in the $80,000–$82,000 area. If the current $65,000–$66,000 support fails, the next significant demand zone appears around $59,000–$62,000, which aligns with the lower support band visible on the chart.
BTC/USDT 4-Hour Chart
The 4-hour chart highlights the mechanics of the breakdown. Bitcoin consolidated below the former support region around $73,000–$74,000 before sellers reasserted control and drove another impulsive leg lower. Recent price action resembles a textbook breakdown-and-retest sequence.
After the rejection from the pullback region near $71,000–$74,000, Bitcoin experienced an aggressive liquidation-driven decline toward the $65,000 support zone. The current reaction at this level indicates buyers are attempting to defend it, but the market remains vulnerable while trading beneath the broken support cluster. For bulls to regain momentum, BTC needs to reclaim the $71,000–$74,000 range and establish acceptance above it.
Failure to reclaim that area would likely confirm a deeper pullback and leave the market exposed to further downside, with the $65,000 support acting as the last major defense before a potential move toward the low-$60,000 region.
Sentiment Analysis
The 3-day liquidation heatmap shows a concentrated cluster of short-term liquidity above the current market price, centered around $70,000 with heavier pockets extending toward $75,000. This setup suggests that after an aggressive decline, Bitcoin may attempt a relief bounce to target overhead liquidity, since markets often move toward high-liquidity zones after liquidation cascades clear nearby positions.
However, the heatmap also indicates most attractive liquidity is above the price rather than below it. That creates the potential for a short-squeeze recovery toward $70,000–$75,000 if buyers successfully defend the $65,000 support zone. For now, the broader trend remains bearish following the channel breakdown and the loss of the 100-day moving average.
The $65,000–$66,000 area is the critical level to watch. Holding above it could allow Bitcoin to stage a corrective rebound toward overhead liquidity, while a decisive breakdown would likely open the door for a move toward the $60,000–$62,000 support region.