Bitcoin is approaching the lower boundary of its ascending channel near $70K-$71K after a failed recovery toward $81K. Buyers have stepped in near short-term demand, but the rebound is modest and futures activity is heating up.
Bitcoin extended its decline toward $71K and now sits near the lower boundary of its broader ascending channel. Buyers responded near short-term demand, yet failed recoveries leave the market exposed to further volatility.
Daily chart shows lower highs and lower lows
The daily chart shows Bitcoin forming lower highs and lower lows after losing the channel's midpoint. A failed recovery toward $81K was followed by sustained selling, and the price now approaches the channel's lower boundary around $70K-$71K.
The recent decline produced a lower wick near $71K, but the rebound since has been modest. Buyers have yet to establish a convincing reversal.
A sustained daily close beneath the boundary would signal a more significant structural breakdown and raise the risk of a move toward the $67.8K-$69.8K demand zone. Defending the channel, by contrast, could support a relief rally, though Bitcoin would first need to recover $75K-$76K. The $77.4K-$81K supply zone remains the main obstacle.
Four-hour chart shows failed recoveries
On the four-hour chart, Bitcoin trades beneath the lower boundary of its descending channel, and attempts to reclaim it have failed. The broken trendline appears to act as resistance around $74.2K-$74.5K.
The latest selloff briefly entered the upper portion of the $71.1K-$72.9K demand zone before rebounding. Buyers then could not hold the recovery above $74K, and the price returned toward $71.5K. If the recent low around $72.7K gives way, Bitcoin could move deeper into the demand zone toward $71K-$72K.
Futures activity heats up
The Futures Volume Bubble Map shows a cluster of heating readings as Bitcoin fell from approximately $76K toward $74K. That contrasts with the mostly neutral readings earlier in the correction, indicating that futures trading intensified near the latest lows.
That metric alone cannot separate aggressive selling, hedging, liquidations, or buyers absorbing supply. The readings remain in the heating category rather than overheating, and they do not yet confirm capitulation or a durable bottom.
Source: CryptoPotato
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