After suffering one of its steepest corrections in recent months, Bitcoin is showing early signs of stabilization above a major demand zone. However, with the price still trading below several important resistance levels, the recent bounce may simply represent a temporary relief rally within a broader corrective phase.
Bitcoin Price Analysis: The Daily Chart
On the daily timeframe, $BTC has found support around the critical $60K psychological support range. The blue demand zone is currently acting as the market’s primary support, as buyers have managed to defend the region so far, preventing a deeper breakdown. However, the recovery remains weak and lacks convincing bullish follow-through.
As long as Bitcoin remains below the broken support area at $65K-$66.5K and the larger supply zone around $72K-$74K, rallies are likely to be viewed as corrective rather than trend-changing. A failure to reclaim these levels could open the door for another test of the $60K region and potentially the lower boundary of the demand zone.
On the upside, $BTC would need to reclaim the $66K-$67K area first before targeting the more significant resistance cluster near $73K-$74K.
$BTC/USDT 4-Hour Chart
The 4-hour chart provides a clearer picture of the ongoing consolidation. Following the steep decline from above $73K, Bitcoin found support inside the $59K-$62K demand zone and has since developed a rising wedge formation.
While the pattern reflects short-term recovery efforts, rising wedges frequently act as bearish continuation structures when they emerge after strong downtrends. Price is currently trading near $62.7K while approaching the wedge’s lower support line.
This creates an important short-term inflection point. A breakdown below the rising wedge could trigger another wave of selling pressure, potentially sending $BTC back toward the $60K support area and possibly the lower boundary near $59K.
Meanwhile, any recovery attempt is likely to encounter significant resistance around $65K-$68K, where a fresh supply zone has formed following the recent breakdown. This area represents the first major obstacle for bulls and could attract renewed selling interest if tested.
From a short-term perspective, the structure currently favors a pullback scenario unless buyers can invalidate the bearish setup by breaking above the wedge resistance and reclaiming the nearby supply zone.
Onchain Analysis
The Bitcoin Realized Price metric continues to provide an important perspective on the broader market cycle. Realized Price, which represents the average acquisition cost of all circulating $BTC, currently sits around $53.5K, while spot price remains near $62.5K.
Historically, Bitcoin tends to maintain bullish market conditions while trading above its realized price. Despite the recent correction, $BTC still holds a meaningful premium above this level, suggesting that the broader cycle structure remains constructive.
However, the chart also shows that the realized price has flattened in recent months after a strong rise throughout 2024 and 2025. This slowdown reflects reduced capital inflows and a cooling phase in investor activity.
As a result, although the long-term on-chain picture remains supportive, it does not necessarily prevent additional short-term downside. Similar periods in previous cycles often saw prolonged consolidations and multiple retests of support before a stronger trend resumed.
For now, the combination of weakening technical structure and a still-positive on-chain backdrop suggests that Bitcoin may experience further pullbacks toward the $60K support region before attempting a more sustainable recovery.
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