Bitcoin has suffered a decisive breakdown from its multi-month rising channel, triggering a sharp sell-off that pushed the price toward a major support cluster around $65K. The rejection from the 100-day moving average and the inability to reclaim lost support levels suggest sellers remain in control in the near term, although $BTC is now approaching an area where demand previously emerged.
Bitcoin Price Analysis: The Daily Chart
On the daily timeframe, Bitcoin has invalidated the ascending channel structure that guided the price action for several months. After failing to hold above the channel’s lower boundary, $BTC accelerated lower and lost the 100-day moving average around $73.5K, which had acted as an important dynamic support throughout the recovery phase.
The breakdown below the $73K-$74K region confirms a bearish structural shift and increases the probability of a deeper correction. The asset is currently testing a key support zone around $65K-$66K, marked by a notable horizontal demand area that previously triggered strong buying interest.
Any recovery attempt is likely to face significant selling pressure between $70K and $73K, while a broader relief rally could target the former channel support and the 200-day MA near $80K-$82K. If the current support fails to hold, the next major demand zone appears around $59K-$62K, which aligns with the lower blue support area visible on the chart.
$BTC/USDT 4-Hour Chart
The 4-hour chart provides a clearer view of the breakdown. Bitcoin consolidated beneath the former support region around $73K-$74K before sellers regained control and initiated another impulsive leg lower. The recent price action resembles a textbook breakdown and retest sequence.
Following the rejection from the highlighted pullback region near $71K-$74K, Bitcoin experienced an aggressive liquidation-driven decline toward the $65K support zone. The current reaction from this area suggests buyers are attempting to defend the level, but the market remains vulnerable while trading below the broken support cluster. For bulls to regain momentum, Bitcoin would need to reclaim the $71K-$74K range and establish acceptance above it.
Failure to do so will likely confirm a pullback and could leave the market exposed to additional downside pressure, with the $65K support acting as the final major defense before a potential move toward the low-$60K region.
Sentiment Analysis
The 3-day liquidation heatmap highlights a significant concentration of short-term liquidity above the current market price. This liquidation cluster is located around $70K, with additional dense pockets extending toward the $75K region. This positioning suggests that, after such an aggressive decline, Bitcoin may eventually attempt a relief bounce to target overhead liquidity. Markets frequently gravitate toward high-liquidity zones, especially after major liquidation cascades have cleared nearby long positions.
However, the heatmap also shows that most of the attractive liquidity currently sits above price rather than below it. This creates the potential for a short-squeeze recovery toward the $70K-$75K region if buyers successfully defend the $65K support area. For now, the broader trend remains bearish following the channel breakdown and the loss of the 100-day moving average.
The $65K-$66K zone is the key level to monitor. 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 $60K-$62K support region.
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