Bitcoin [BTC] traded near $70,800 at press time after rebounding from the $65,000 demand zone, which aligned with the highlighted support band between $64,500 and $66,500.
Initially, price reacted strongly within this zone, forming a base after multiple tests, while buyers stepped in to absorb selling pressure. As a result, recent candles showed a short-term recovery, with price pushing back above $70,000.
Source: TradingViewHowever, this rebound remains tentative, as price struggles to extend toward the $71,400–$75,600 supply region. Upper wicks on recent candles suggest early signs of rejection, while bodies lack strong follow-through.
Meanwhile, volume remained relatively muted during the advance, contrasting with heavier participation seen during prior declines.
Bitcoin’s upside lacks conviction as derivatives cool off
As momentum builds gradually, the $65,000–$66,500 zone continues to define the current value area. Unless buyers sustain pressure above $71,000 and push toward $74,000, the price may rotate back to retest support, maintaining a range-bound structure.
Bitcoin edges higher, yet derivatives positioning reveals a fragile foundation beneath the move. Initially, Funding Rates remained mildly positive, with Binance at 0.0001% and the OI-Weighted average near 0.0020%, signaling restrained participation rather than aggressive bidding.
Source: CoinGlassAs price lifts, this subdued backdrop suggests that the move leans on short trimming, not fresh demand.
At the same time, liquidation data reinforced this imbalance, as only $74 million in shorts closed against $395 million in long liquidations. Despite the price being high, the pain is being felt by the bulls, which usually precedes a deeper flush.
Meanwhile, Open Interest dropped to approximately $48.5 billion, down 4.8% in 24 hours, reflecting position closure.
As this unfolds, momentum fades quickly after each upward push, with long positions unwinding soon after. Without a sustained rebuild in Open Interest alongside price strength, the advance risks fading, leaving Bitcoin vulnerable to another pullback.
Bitcoin’s structure remains fragile
Price hovered just above the 20-day EMA at $70,624 at the time of writing, yet momentum remained uncertain. Initially, BTC attempted to stabilize after rebounding from sub-$65,000 levels, forming a short-term base.
However, as price approached the 50-day EMA at $72,772, repeated rejections emerged, with upper wicks near $74,500 signaling persistent supply.
Source: TradingViewThe structure reflects hesitation rather than strength, as candles failed to close decisively above key moving averages. The RSI held near 50.68, indicating neutral momentum and a lack of strong directional bias.
For now, buying pressure appears limited, with no clear expansion in participation.
Unless price reclaims the $73,000–$74,500 zone with conviction, the move risks fading, while it may gradually rotate back toward deeper support levels established earlier.
Final Summary
- Bitcoin’s rebound above $70,000 shows weak conviction, as muted volume, soft funding, and $395 million in longs outweigh limited short covering.
Bitcoin remains capped below $71,400–$75,600 resistance, and without a strong close above $73,000–$74,500, a downside toward $65,000–$66,500 stays likely.
Source: https://ambcrypto.com/bitcoin-reclaims-70k-but-btc-bulls-are-still-taking-the-hit/
