TLDR
- Bitcoin defends $74K–$75K zone after dipping to $74.5K.
- Price rebounds to $78K with 2.5% daily gain.
- Weekly close below $80K turns it into resistance.
- CME gap at $84.5K could attract price if upside continues.
Bitcoin is holding steady above the $74,000–$75,000 support zone following recent selling pressure. This level, both technical and psychological, has acted as a defensive area during recent volatility.
On the 1-day chart, Bitcoin briefly fell to $74,500 before recovering strongly. This bounce allowed the price to move above $78,000, reducing fears of a deeper drop. The move came after a sharp early-day decline, which saw strong bearish momentum. However, a swift recovery followed as buyers stepped in around the $74,500 mark.
As of writing, Bitcoin is trading just below $79,000 with a 24-hour gain of around 2.5%. Short-term metrics show upward movement, with 4-hour and 24-hour price increases of 1.32% and 1.69% respectively. Meanwhile, longer-term performance remains under pressure, with 30-day and 180-day declines of -12.29% and -30.88%.
Price Pattern Signals Bearish Breakdown, But Bulls Show Resistance
A descending triangle pattern formed on Bitcoin’s daily chart suggests bearish pressure remains. The price made lower highs, while support held at around $170 before breaking down. This pattern, typically bearish, was confirmed with a breakdown below the support and a strong volume spike.
The price fell to $160, completing the pattern. Despite the breakdown, Bitcoin is showing signs of resilience. Bulls managed to push the price back toward higher levels. A V-shaped recovery on intraday charts showed bullish activity after early selling.
Short liquidation data shows pressure between $78,500 and $80,000. If the price moves past this range, it may trigger more short covering. That could push the price toward $82,000 or higher in the short term. However, $80,000 is now viewed as resistance on higher timeframes.
Weekly Close Below $80K May Signal Resistance Shift
Bitcoin has closed a weekly candle under $80,000 for the first time in recent weeks. According to market analyst Rekt Capital, this level may now act as resistance if bulls cannot reclaim it soon.
“When price closes below a key level on the weekly chart, it often flips into resistance,” the analyst said. If Bitcoin continues to fail at reclaiming $80,000, it could confirm the recent trend breakdown and expose it to further declines.
Source: Ted Pillows on X.
Ted Pillows, another market commentator, pointed out a potential short-term bounce. He noted an unfilled CME gap near $84,500, which may act as a price target. “Most CME gaps fill within a week, so keep an eye on this,” he said on social media platform X.
Heatmap Data Shows Risk Below $74K, While Bulls Aim for $80K
The coinglass Liquidation heatmap data indicates that there are high short liquidation levels ranging between 78500 and 80000. This zone has the potential to be a catalyst on a sudden upward movement in case bulls take over.
But at the level below the 74,000, there is not much large liquidation cluster. This demonstrates poor support less than the existing range. The breaking of the $74K75K level will result in the decline of the Bitcoin to the 65,000-60,000 bracket. This zone is viewed by several traders as the subsequent potential support zone.
Source: Coinglass
Bulls are in the meantime trying to recapture the level of 80,000. The ongoing trend above this may lead to further upward trend, but its resistance is strong. In case buyers do not possess the money of 74,000, more selling can ensue.
The volume, buyer strength, and market stability above the $74K floor are the factors that affect the short-term recovery of Bitcoin.
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