BTC Attempts Recovery While Sellers Linger

• BTC rebounds near $65.4K but broader trend still favors sellers, signaling caution.
• Open interest fell to $40B, showing reduced leverage and cautious derivatives positioning.
• Spot flows indicate easing selling pressure, hinting at potential short-term stabilization.

Bitcoin trades near $65,443 after bouncing from the $62,571 swing low on the one-hour chart. The rebound follows a sharp rejection from the $67,700 to $68,000 lower-high zone. Consequently, traders now assess whether this move signals recovery or another relief rally. Short-term momentum shows improvement, yet the broader structure still favors sellers. 

Key Resistance and Support Levels in Focus

Price now approaches $65,777, which aligns with the 0.382 Fibonacci retracement. A clean break above this barrier could push Bitcoin toward $66,767 at the 0.5 level. 

However, bulls must reclaim the $67,757 to $69,167 cluster to weaken the prevailing lower-high pattern. Significantly, that 0.618 to 0.786 region represents a structural ceiling within the broader corrective phase.

On the downside, $64,551 serves as immediate support at the 0.236 retracement. If sellers regain control, price may revisit the $63,500 to $62,753 range. A decisive drop below $62,571 would confirm continuation toward deeper liquidity pockets. Hence, short-term traders monitor these boundaries closely as consolidation develops.

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The Donchian Channel mid-band near $64,800 to $65,000 now acts as a pivot. Price attempts to hold above this zone, signaling temporary recovery strength. However, the ADX reading near 22 continues to decline. This trend suggests weakening directional force and a potential range-bound environment.

Open Interest Signals Cooling Leverage

Bitcoin open interest expanded aggressively earlier in the cycle, climbing from below $20 billion to nearly $90 billion. That surge aligned with higher price highs and strong speculative appetite. However, sharp drawdowns followed local peaks, revealing forced liquidations and rapid deleveraging.

After the latest high, open interest dropped toward $40 billion. Consequently, the derivatives market reflects reduced exposure and cautious positioning. Levels remain elevated compared to early-cycle readings. 

Moreover, stabilization above $40 billion could indicate renewed confidence. Conversely, further declines may confirm continued leverage reduction in the near term.

Spot Flows Show Selling Pressure Easing

Spot exchange data shows persistent outflows dominating most sessions. Large red spikes in May, August, October, and mid-November marked intense distribution phases. Additionally, inflow bursts appeared smaller and less consistent, suggesting limited accumulation.

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However, recent sessions reveal softer outflow intensity. A notable inflow spike in early February hinted at temporary buying interest. Netflows still lean negative overall, yet selling pressure appears to cool. 

If inflows strengthen while outflows fade further, short-term stabilization could follow. Consequently, Bitcoin now stands at a technical crossroads shaped by leverage dynamics and evolving spot demand.

Technical Outlook for Bitcoin Price

Key levels remain clearly defined as Bitcoin trades near the mid-$65,000 region. Price recently rebounded from $62,571 after rejecting the $67,700–$68,000 lower-high zone. Consequently, the market now sits at a technical crossroads. Short-term momentum improves, yet the broader structure still reflects lower highs.

Upside levels: Immediate resistance stands at $65,777. A sustained break above this level exposes $66,767 as the next hurdle. If buyers reclaim that midpoint, price could challenge $67,757 at the 0.618 retracement. Moreover, $69,167 represents the 0.786 level and a major resistance ceiling. A decisive move above the $67,757–$69,167 cluster would weaken the current bearish structure.

Downside levels: Initial support rests at $64,551. Below that, $63,500–$62,753 forms a demand pocket. The key swing low at $62,571 remains critical. A breakdown under this level would confirm continuation toward lower liquidity zones and reinforce the corrective bias.

The Donchian Channel shows price attempting to hold above the mid-band near $64,800–$65,000. However, ADX near 22 signals fading trend strength and possible consolidation. Hence, volatility expansion could follow once price escapes this compression range.

Will Bitcoin Go Higher?

Bitcoin’s short-term outlook depends on whether buyers can flip $66,767 into support. Stronger inflows and stable open interest could support a push toward $67,757 and potentially $69,167. Additionally, reduced spot outflows may ease selling pressure.

Failure to defend $64,551, however, would shift focus back to $62,571. For now, Bitcoin remains in a pivotal zone. Momentum builds cautiously, but confirmation above key Fibonacci resistance will determine the next decisive move.

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