Bitcoin (BTC) price fell to $65,800 on Wednesday, slipping back below key intraday trend lines and raising concerns that last week’s drop to $60,000 may not have been the final bottom. Now, analysts say that the possibility of another drop to the yearly low ($59,800) is increasing due to a growing liquidity gap between $66,000 and $60,000.
Key takeaways:
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Bitcoin has formed a series of lower highs after repeated rejections near the $70,000–$72,000 resistance zone.
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The relative strength index (RSI) is trending toward oversold levels as the price trades below key moving averages.
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The liquidation heatmap indicated an absence of liquidity up to $60,500, keeping the risk of a downside price move open.
Failure to hold $70,000 weakens Bitcoin’s short-term prospects
Bitcoin’s one-hour chart shows multiple failed attempts to hold above $70,000. Each rejection has led to lower price highs and steady selling pressure.
BTC’s price briefly pushed into intraday highs of $69,800 before reversing sharply during the New York session on Wednesday, forming a classic swing failure pattern. The move trapped breakout longs and accelerated downside momentum.
BTC also traded below both the 50-period and 100-period exponential moving averages, confirming short-term bearish control. The relative strength index (RSI) remained below 50, indicating limited buying pressure.
A 15-minute order block sits near the $60,800–$61,000 region, an area where strong buying pressure previously stepped in after BTC printed a yearly bottom at $59,800. This region remains a liquidity target if $64,000 fails to hold.
Related: When will Bitcoin start a new bull cycle toward $150K? Look for these signs
Heatmap data shows $60,000 is a liquidity magnet
Bitcoin’s liquidity heatmaps reveal stacked orders above $72,000, but it also highlights a “liquidity void” between $66,000 and $60,500. This “liquidity void” may act as a magnet, as price tends to move quickly through low-liquidity areas to tap concentrated stop clusters below.
Despite more visible liquidity being higher, the downside remains open as a final stack of leveraged longs worth over $350 million is still positioned near $60,500.
Bitcoin trader Husky said Bitcoin is slipping below the anchored volume-weighted average price (VWAP) drawn from last week’s lows at $59,800, a level that is acting as a short-term fair value.
With the overall market structure starting to weaken, a lack of a swift recovery above $68,000 increases the risk of further downside toward lower support levels near $65,000. For now, Bitcoin is expected to trade within a broad $60,000 to $72,000 range, according to the trader.
Likewise, market analyst EliZ noted that BTC is consolidating near $66,500 inside a descending channel. A break below this level may send the price toward the $63,400–$64,600 support zone, increasing the odds of a revisit to $60,000.
Related: Bitcoin reacts to major US jobs data beat as Fed rate pause odds near 95%
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