Bitcoin continues to trade within a narrow range, but behind the scenes structural weaknesses are becoming increasingly apparent. Prices are holding below the key $72,000 level and are currently resistancethe broader technical outlook remains fragile and short-term corrections may simply mask potential downside risks.
Bitcoin enters a clear correction phase
Bitcoin entered an apparent correction phase after peaking in the $120,000 to $125,000 area. Crypto Analyst Alejandro₿TC memo The downward break in the weekly structure and the impulsive development of the most recent bar indicate that momentum currently favors sellers over buyers.
The key level to watch is the $72,000-$74,000 zone. Previously acting as strong support, this area has now been lost and turned into resistance. As long as Bitcoin continues to close below this range in the weekly time frame, any upward movement should be viewed as a correctional pullback rather than confirmation of a sustained rally. Reversal.
On the downside, the $50,000 to $52,000 region stands out as the main magnet. This zone represents a key weekly demand area and is the base of the previous impulsive rally. if bearish If the pressure continues, it becomes the most logical target for a deeper retracement.
The monthly financial results, which are coming up in 11 days, could be decisive. A close below $72,000 will confirm the breakdown and increase the possibility of further decline. Structurally, market Weakness remains below that level, but a decisive recovery above $74,000 would be the first meaningful signal that strength is returning.
Compression intensifies around $68,000
and volatility Compressing as prices trade within an increasingly narrow range, Bitcoin continues to be tightly wrapped around the $67,000 to $68,000 range. The lack of a decisive move in either direction suggests that the market is conserving energy for a larger expansionary move.
According to Columbus, liquidity continues to rise above the $70,000 level, with notable bids layered between $64,000 and $66,000. With liquidity piling up on both sides, the market is effectively squeezed between opposing forces, waiting for a catalyst.
The longer Bitcoin remains trapped within this constricting structure, the more aggressive the eventual attack will be. happen There is a tendency to Such a compression phase usually ends with a large displacement as one side of the market is forced to unwind its positions.
From here, sustained acceptance above the $69,500 to $70,000 area could open the door for momentum into a more overhead-heavy liquidity zone. On the other hand, if that threshold cannot be regained, especially if bidding starts to fade under pressure, the hunt for prices in the mid-$60,000 range remains firmly in place. The next decisive move is likely to depend on which side of liquidity is targeted first.
Featured image from Pixabay, chart from Tradingview.com
