The Bitcoin price has gone through an intense period of volatility in recent days. with a violent sell-off that has dragged its price into the $70,000 range. The move failed bullish positioning in the short term and forced the price below several intraday support levels. Although there are risks of further downward developmentsBitcoin now wants to stabilize and push to regain key benchmark levels. Technical outlook suggests a path back to the $81,000 region could open up more quickly expected if certain conditions are met.
Range of the annual low
One of the most important developments on the map is the swing of the latter annual candle low around $74,456. This move left liquidity below previous lows and was a clear downside hold that had been anticipated for months.
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From a market structure perspective, this type of sweep is a reset point that frees up weak hands and allows price to build a more stable base. The subsequent rebound pushed Bitcoin back to $77,000, a move that shows buyers were willing to defend the territory after the liquidation. This is now turning into a decision zoneand that’s where the next directional move becomes more important.
As noted by crypto analyst Minga on the social media platform X Bitcoin went back to testing the weekly open just below $77,000. Staying above it would mean the recovery is making real progress, which in turn would allow the price to revise the monthly open at $78,700. The chart shared by the analyst also shows multiple equal highs above that region, right inside the previous low.
Together, these elements form a bag of unfinished business. If Bitcoin regains and holds acceptance above the weekly open, the chances of a breakout through the monthly open increase, with that momentum potentially taking the price to $80,000 where liquidity is in the previous range around $81,000.
Bitcoin price chart. Source: @Mingaritme on X
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Downside scenario and the relief bounce zone below
There is a valid alternative path if Bitcoin’s advances continue to decline at the weekly open, which appears to be the case with the current price action. In that case, there is a deeper downside target between $70,800 and $69,100. This area stands out as a high confluence zone that aligns with a higher timeframe order block, the 0.5 Fibonacci retracement, and the all-time high of the last cycle in 2021.
At the time of writing, Bitcoin is trading at $70,930, down 7.2% in the last 24 hours and now at risk of losing $70,000. If the price remains above this zone after the current test, Bitcoin will likely cross into a range before attempting to continue and break above $81,000.
Featured image created with Dall.E, chart from Tradingview.com