Bitcoin remains under significant selling pressure after losing a key higher timeframe structure and falling below several key support levels. Although buyers have managed to protect the $60,000 region so far, both the technical and on-chain conditions suggest that the market is still at a vulnerable stage. Legal recovery requires: $BTC To regain some overhead resistance zones.
Bitcoin Price Analysis: Daily Chart
In the daily time frame, $BTC A decisive break has been completed from the large upward channel that supported price trends throughout most of the first half of the year. The collapse accelerated when the market lost the psychological support zone of $70,000, followed by a sharp decline of around $10,000 in just four days.
Following the decline, Bitcoin fell to a key support area around $60,000, and buyers finally stepped in. The RSI, which has bounced back from recent candlesticks and significant oversold values, is showing stability above the $60,000 zone. This prevented further decline towards the next important support cluster around $51,000.
However, the overall structure remains bearish. The asset remains below both the 100-day and 200-day moving averages and has now converged above the $70,000 area. These moving averages act as dynamic resistance and reinforce the importance of the overhead supply zone.
if $BTC If we are to attempt a recovery, the first major resistance is between $65,000 and $68,000. Beyond that, sellers are likely to concentrate on the $72,000-$74,000 supply zone, which coincides with the breakdown area and previous channel support. To reclaim this zone, the current bearish structure on the daily time frame needs to be overridden.
$BTC/USDT 4 hour chart
The 4-hour timeframe is showing the first signs of short-term stabilization after a sharp decline. Following a sharp decline from $74,000, Bitcoin found support near $60,000 and has since formed a small upward channel, indicating an improvement in short-term momentum. The RSI has also recovered from a heavily oversold situation and is gradually rising as the bearish momentum begins to cool down.
Despite this improvement, the current recovery remains relatively slow. The market is approaching the first significant supply zone between $65,000 and $68,000. This area could attract fresh selling pressure and determine whether the pullback develops into a larger recovery or just a new high.
A successful breakout above $68,000 will likely trigger a move into the more important $72,000-$74,000 resistance area. Conversely, a breakdown of the current recovery path could re-expose the $60,000 support. Losing this level significantly increases the chances of further decline towards the $51,000 area. However, for now, the short-term structure favors a consolidation and bailout rebound, but there is still no confirmation of a reversal of the overall trend.
On-chain analysis
The UTXOs in Profit (%) metric shows one of the most notable developments on the on-chain side. This metric measures the percentage of Bitcoin’s unspent transaction output that currently remains profitable. Historically, readings above 90% have been associated with strong bull market conditions, but sharp declines are often accompanied by major corrections or periods of capitulation.
This metric has recently fallen by around 50%, marking one of the sharpest deteriorations in network profitability displayed on the graph. At current levels, only about half of all UTXOs remain profitable, reflecting the severity of the recent correction and the amount of underwater supply currently present in the market.
Historically, such sharp contractions in profitability often appear during late-stage corrections, when weak holders have already been forced out of their positions. However, it may also precede a prolonged period of consolidation as the market seeks to absorb newly realized losses.
combination of $BTC While UTXO profitability is near cycle lows, a break above the $60,000 support zone creates an important inflection point. If buyers are able to hold on to current levels and push prices back past key resistance areas, a severe decline in profitability could eventually be seen as a signal for capitulation. Until then, on-chain data will continue to reflect a market that has experienced significant stress and has not yet fully recovered its previous bullish momentum.
